LearnAboutLaw Staff on Apr 21st, 2008Deficiency Judgement, Anti-Deficiency Laws, California and Elsewhere
July, 2007
As we noted in Foreclosure Law, foreclosure is the process by which a bank or lender takes possession of collateral used to secure a loan. Put another way, foreclosure happens to a homeowner when he or she doesn’t pay their mortgage. And, in California Foreclosure Law, we looked more closely at the law [...]
LearnAboutLaw Staff on Apr 21st, 20081099 After Foreclosure - Cancellation of Debt & Anti-Deficiency
Here we take a closer look at the phenomenon of 1099 Cancellation of Debt income following a foreclosure.
Why Foreclosed Homeowners Receive 1099s for Cancelled Debt
First, the basics: if you owe a debt to someone else, and that debt is forgiven, the IRS Code treats that forgiven debt as income to you. Does it make sense? [...]
