@damnedanddetermined wrote:Ou homewas sold last August..regualar sale, no short sale or foreclosure....First mortgage was PIF, secong mortgage was a 1099-C (and was under morgage forgiveness act) so no taxes were due on it. Now, this was almost a year ago...can I still qualify for another mortgage? Also, on one of the CR it shows 1099-C, but next to that it says "was a CO"....can that be removed because it actually wasnt.
I'm not sure what you mean by "forgiven" - if you didn't pay it and a 1099-C was issued the lender charged it off as uncollectible, The reason you didn't owe taxes is because Congress passed the as part of a 50 provision "EXTEND ACT" (Senate version) 50 different expiring tax issue at the very end of the last Congress including the Mortgage 1099-C tax extension providing an extension until December 31, 2014 on this deduction. You should have filled out on your taxes 1099-C Misc income and then "Mortgage write off 1099-C exception" which would equal the amount off to $0.
The purpose of a 1099-C is to document a charged off debt as uncollectible (simple answer without the whats or ifs or but's). The fact that you didn't pay taxes on the 1099-C due to a mortgage exemption program - now expired unless Congress acts again on it this year - does NOT mean the second mortgage was actually paid in full. I can't say if this issue will prevent or delay you getting another mortgage, but it is a charge off on mortgage debt, so it's sure NOT going to help your chances or rates in the near term.
Edit Add: HR 5771 Link to law: http://www.lis.gov/cgi-lis/bdquery/D?d113:1:./temp/~bdzOKm:@@@E&summ2=m&:dbs=n
/billsumm/billsumm.php...
