Hi. I am beginning the mortgage process. In 2009, we fell behind on our mortgage payments and tried to do a modification or deed in lieu, but was never able to complete anything. In 2010, we vacated the home and relocated to another state, still trying to resolve things. Finally, February, 2013, we completed a short sale. I have received a 1099 for the forgiven mortgage debt and a 1098 for interest collected.
My accountant is saying that we may not qualify for the Mortgage Relief Act because, since we left the property, it might NOT be considered our "primary residence," even though it was our primary residence at the time the triggering incident occurred. It just took four years to finalize it. He said we can fill out a form of "Insolvency."
If we do that and claim "Insolvent," willl that affect our approval for a mortgage in any way?
Thank you!
