Bank Of America 2nd Mortgage Forgiveness

smpjaf

LoanSafe Member
Oct 3, 2013
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I received notification from Bank of America that they are forgiving the entire amount of my 2nd (approx. $124,000) due to the deal they made with the government (etc.). I am just wondering how will I know and how do I figure out how much taxes I am going to be held accountable for paying this coming year. Will the entire amount be considered income or do they charge you a certain tax percentage for this type of debt forgiveness? I live in CA and my house is still underwater even with the 2nd loan forgiveness. Any help would be appreciated?

Thank you,
Jessica
 

bkakca

LoanSafe Member
Jul 5, 2013
189
20
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I received notification from Bank of America that they are forgiving the entire amount of my 2nd (approx. $124,000) due to the deal they made with the government (etc.). I am just wondering how will I know and how do I figure out how much taxes I am going to be held accountable for paying this coming year. Will the entire amount be considered income or do they charge you a certain tax percentage for this type of debt forgiveness? I live in CA and my house is still underwater even with the 2nd loan forgiveness. Any help would be appreciated?

Thank you,
Jessica

Hi smpjaf, we settled a couple last year. Our accountant took care of the 1099 forms issued by Bank of America on the settled debt. They were issued for the amount owed minus the amount we paid to settle each Heloc. They are not just added as income, so I really suggest you have a professional do your taxes this year as they will know how to address this. Also, if it was a purchase money 2nd, it may be exempt.

Could you please share your details...lst and 2nd mortgage amounts, who they're with (BofA 2nd we know), when you stopped paying, how long it took for them to charge it off, if they contacted you, etc. It would be much appreciated by those of us still hoping for a letter saying our Heloc is forgiven also....you've got one of the Golden Tickets, Congrats !!
 

bubberrand

LoanSafe Member
Aug 21, 2010
146
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OP. I'm in Cali and got the same letter. We should be receiving letters shortly stating the lien has been released, and your balance is zero. You will need to monitor your property liens on your county's website to ensure that it is indeed released. If Congress doesn't extend the Mortgage Debt Relief Act, you are not insolvent, or if your 2nd wasn't for home improvements or purchase money, you could be liable for taxes. A 1099 will be issued which your dollar amount (very close to mine) will be added to your income (ouch.)
 

clars

LoanSafe Member
Jun 3, 2013
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We settled two Helocs in 2014, on rental homes. Although the forgiven debt was 1099'd, our accountant was able to offset it with rental losses, depreciation, etc. We actually got a refund, even with about $180K in 1099 forgiven debt income. Very glad we left this to a professional.
You might also check with Bank of America as I read that if the debt forgiven was taxable to you (non extension of mortgage debt relief act) that per last years settlement that Bank of America would provide tax assistance per their agreement. I read the actual settlement agreement and the language for this is in there. I hope this can help you.
 

bkakca

LoanSafe Member
Jul 5, 2013
189
20
18
You might also check with Bank of America as I read that if the debt forgiven was taxable to you (non extension of mortgage debt relief act) that per last years settlement that Bank of America would provide tax assistance per their agreement. I read the actual settlement agreement and the language for this is in there. I hope this can help you.
Thank you Clars....I believe since these were not part of any DOJ settlement they were doing, and we negotiated with the CAs to settle these, that the written off/forgiven part of the Helocs was not eligible for any tax assistance. These were also not our primary residences, and not purchase money loans, they were taken out at later dates. But we appreciate your comments, thanks again!
 

Tina McDaniel

LoanSafe Member
Nov 11, 2015
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Received a call from 877-516-8118 – Googled it, got Lender Live loan servicing?
Has anyone been contacted by this number/company?

Do we know if BOA, (BofA, Bank of America) is using them to collect on delinquent mortgages?
Did not answer the call, and no message was left.
I was wondering if BOA is still behind all the loans they transferred to Nationstar? Nationstar is useless. We have tried doing a DIL, we offered them settlement offers, and recently sent them a QWR letter. They do not have my note, they fabricated my assignment of mortgage and I have proof of that, and my Mers # is inactive. . I refuse to pay on a loan they can't show ownership of.. I recieved a letter from Bony after inquiring about their interest in my loans due to the fact this is a $30,000 second mortgage, part of an 80/20 loan and I told them that Nationstar blamed Bony for sabotaging my request for foreclosure alternative and Bony wrote and said they do not own it and have no say so on the disposal of it such as, modifications, DIL, etc...They want me to name the representative that told us that...I envy those of you that were forgiven..Hopefully there will be another DOJ lawsuit for the paperwork fraud and all the other fraud that these servicers are still doing and the Big banks that are hiding behind them..It's still not over for millions of us out here..
 

Maria Sanchez

LoanSafe Member
Jun 22, 2017
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After Bankruptcy Bank of American sold my 2nd Mortgage (that originated from Countrywide) of $40K loan to Nationstar, who sold it to Veripro , who sold it to SN Corportion Collection Agency. Now SN Corporation is trying to foreclose on our home for $71K. How did Bank of America forgive others who filed bankruptcy due to the whole Countrywide Financial Crisis and Didn't forgive all. We are in the middle of a Pandemic. My hushband is currently not working. We need help fighting this nightmare.

My Loan # was 152588553. How can we still get help from the National foreclosure settlement? Please advise. Desparate in 2020
 

Katneedsrefi

LoanSafe Member
Sep 25, 2015
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I wish I could help. That’s sick. I had a B of A second that should have been forgiven as well. It wasn’t because I was current.

I hope your situation has improved somehow.