Trying to do taxes... we didn't receive any 1099s for our foreclosure...

[hopeforus]

What the heck do I do? It asks if I had a foreclosure but we never received any statements from the lender after it was foreclosed on. I certainly never received anything this tax season for it. O.o Will I get into trouble if I don't have anything to enter? They sold our house for what we owed on it. We didn't have a balance after that.

[laurannm]

Was this foreclosure before or after a BK?

[hopeforus]

We haven't filed bk yet. I believe the house foreclosed at the beginning of the year. DH thinks it was before that but I think it was between Jan and March. Need to find the papers. But no... we haven't filed yet. Would we not get one if the house sold for what we owed?

[HHM]

First, is Wisconsin a non-recourse state (I don't know), but most states are not.

The current deadline for 1099's is actually Feb 16 (Because of changes made last minute at the end of 2010). However, the bank doesn't have to forgive the deficiency, they can keep it on their books as a collectible debt and try to collect it. If they have chosen that option, you would not receive a 1099-C (you might still receive a 1099-A, but there is no action you need to take on a 1099-A).

[hopeforus]

I don't even know what that means. O.o

Would there be a deficiency if there wasn't a balance after the house was sold? Is that the only thing I would have to report anyway would be any deficiency forgiven? I was kind of freaked out when I got to the foreclosure part of the tax program because I didn't want to not report anything... but i figured I would only report if I received something. I can amend if needed. I will have to amend anyway for something else.

So confusing.

[iv65536]

My understanding in Wisconsin is that it is a judicial foreclosure state, and that a deficiency judgment is possible if the redemption period is one year, but not allowed if the redemption period is six months.