1099c for 2017

SJP1995

LoanSafe Member
Dec 29, 2009
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We stopped paying on our 2nd mortgage in 2009 I think (it's been so long I don't exactly remember), we received a loan mod for the 1st and got back on track with bills. We then discovered a few years back that our 2nd was never recorded and there was no lien, so we were able to sell that house for some out of pocket back in 2015. We bought a new home and moved on. Never heard from Chase for years......
We file our 2017 taxes last month and 4 days later were told Chase issued a 1099c for that 2nd mortgage with an occurrence date of Aug 2017. Any chance we can fight it or at least the date? Obviously the mortgage act expired, is there any other recourse?? Other than paying taxes on that amount???
 

Jzone

LoanSafe Member
Jun 20, 2017
202
26
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You are probably going to pay taxes on the 1099C amount, but not certain. There may be a statute of limitations in your state that doesnt allow collections after a certain number of years.

If you didnt file bankruptcy, just stopped paying on the second mortgage, the 1099C is probably valid, even without the lien being recorded. Bankruptcy would stop the debt from being collected, therefore no 1099C could be issued.

Unfortunetely, since the 1099C has been issued, the IRS already knows about it and they will try very hard to collect on it.