bkfiler wrote: I actually pulled out my copy of the perm modification contract/agreement i did on mortgage in 2014 (before i even thought about filing for bk, before loan was reaffirmed), and it does state in bold. "Forgiveness of principal and taxes and/or insurance may impact my current year income taxes. I willrecieve a1099C tax form at the end of the year. The amount on it will be the amount of principal reduction, plus any forgiveness of taxes and/or insurance. This may be treated as taxable income by the IRS."
So it sounds like your lender forgave a portion of the principal amount owed as part of the loan mod and you then reaffirmed the remaining amount. Lender then issued a 1099(c) for the amount it agreed to reduce the loan by under the modification. If this is correct you should not have any problems but absolutely use a qualified tax preparer.
Des.
