1099-C / 2011 Cancellation of Debt?

[cashnocredit]

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@by2 wrote:

Does this also apply to mortgages, i.e foreclosures if issues 1099???

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The IRS implimented a special rule so 1099-Cs aren't filed for most foreclosures. It's temporary due to the housing crisis and expires after 2012. It only applies to a mortgage on your principal home and not re-fi's for larger amounts than the original mortgage amount. It also excludes home improvment amounts.

[by2]

So are you stating that if forgiven for a mortgage for your primary home it should no longer appear on your CB's if you fall within that window?  I did receive a 1099 for my resident! 

[Terrie1977]

I was issued a 1099C from Chase back in 2009 but it is listed on my credit reports (all 3) as a Charge off ans a balance due.

Can I dispute this with Chase since I filed the 1099 with my taxes?

[by2]

Based on what I was reading I was asking the question does forgiveness mean that it should not appear on your reports???  Also once it is issued do you really still have a balance??? 

[pipeguy]

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@Terrie1977 wrote:

I was issued a 1099C from Chase back in 2009 but it is listed on my credit reports (all 3) as a Charge off ans a balance due.

Can I dispute this with Chase since I filed the 1099 with my taxes?

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From what I understand and believe to be correct, once a 1099-C has been issued the debt is "forgiven" meaning it no longer exists. As far as collections, or zombie debt and I assume credit reporting, it does not exist once a 1099-C is issued.

Now, if the 1099-C was issued for a "balance" of a debt, such as you settled a $4500 debt for $2000 and were issued a 1099-C for the $2500 that was written off, that entry would probably still be listed on your credit report as "Collection, balance $0, paid for less than full amount".

[by2]

Thanks, look like I've got some work to do to get this mortgage removed!!!!  Yea.  They have zero the balance out on a couple of my reports but still reporting 120 days late past due and a payment amount.  Thanks again!

[cashnocredit]

A 1099-C is issued based on specific IRS criteria. Some of those criteria would be impact credit reports, some would not. For instance if you are sued 5 years after the debt was due and outside of the state's SOL and you put up an SOL defense and won, a 1099-C would be issued if the amount exceeded $600. If it was inside the SOL and you lost, the judgement would likely appear on your CR but you would not be issued a 1099-C.

[by2]

How does this apply to the second mortgage on the foreclosed home?

[leelee001]

I have a question that i've search high and low for in reference to the debt cancellation and 1099c situation

I had a BOA credit care for about $4000 which had been charged off and eventually they cancel the debt all by themselves I did claim it on my 

taxes but what i want to know is if the full amount should still be shown on my credit report as outstanding, does anyone have an answer for me

[Shogun]

It's been a grey area, some say yes, some say no.  They say that a tax return can be amended, so the balance could actually be listed.