I foreclosed on my house last year and the bank sold it for more than we owed,but say we still owe everything?
The difference between what they lost during the transaction is what I should have received on the 1099. The not-so-gentleman at the bank basically wanted to give the big "Push Back" so that the bank could write it all off. They were wrong. I am liable for the amount they lost and have to record that as a gain in my taxes this year. But if I push back with knowledge as ammo, I may get the correct form in time to file my taxes. The hope is that I do not need to fork out a retainer's fee to do this to the fine gentleman who spoke with me moments ago. I hope this clears it up for me and for anyone else being given the pinch by the banking industry. Also, new laws that went into effect in the last moments of the last presidential administration allow for the amount still owed to not affect your taxes. They are forgiven as part of the relief package put into place.
What they do with it after the fact is none of my concern and I should not get a 1099 based on any of their losses. I have talked to a lawyer and will fight this in court. But it gets better! Because it may cause quite a media stir, the attorney is doing it for free. We are filing a civil suit for defamation of character. Your credit report is part of your character and thus a huge deal. My wife and I did the math and they owed us $8754.26 after the home was sold at auction. The auction sale is the stopping point. Any fees that are created because they had to sell the house are their issue, not mine. Remember, as of the end of the auction....I was no longer the owner. THEY pay the fees...it's their house now!
People, fight the banks! Don't let them win!