Foreclosures *after* BK7 discharge

[justbroke]

See above. If you are issues a 1099-A/C, then you just complete IRS Form 982. (More than likely, when completed Form 982, you'll check Box 1a. Discharge of indebtedness in a title 11 case)

JustBroke - How can you check box 1a if you in a 13 or 7? Wouldn't you have to use one of the other options?

Title 11 is not "Chapter 11". Title 11 is the entire Bankruptcy Code.

[denisejohn65]

Is this only for people who have rental property?

[justbroke]

Is this only for people who have rental property?

No. Can be issued for any property or any loan that was "forgiven".

[cahomeowner]

anyone know if there are any advantages to surrendering (short sale, deed in lieu or a forclosure) your rental properties before filing BK?

I have several short sales approved and wondering if I should just go ahead and complete or sign a deed in lieu which can take another month or two to get approved. the short sales are ready to go.

from what I can tell your going to get 1099 either way if you short sale or sign deed in lieu.

any help would be appreciated.

[justbroke]

anyone know if there are any advantages to surrendering (short sale, deed in lieu or a forclosure) your rental properties before filing BK?

There are none, if you really intend to file bankruptcy. I just see no advantage.

I have several short sales approved and wondering if I should just go ahead and complete or sign a deed in lieu which can take another month or two to get approved. the short sales are ready to go.

They always say the short sale is approved, but when you actually go to close, or have an actual deal on the table, it gets strange.

[cahomeowner]

short sale or deed in lieu

Hi

in my case since I have the short sale approvals and we are just waiting on the closing docs I am thinking the short sale can help me surrender the properties asap.

if I submit a deed in lieu it could take a couple of months to get through the approval cycle. what I thought was interesting is that I would get a 1099 either way.

any deficiency judgments can be waived in BK not sure how the 1099 is going to be extinguished? this 982 form has been mentioned several times so I need to research more. the scary part is that you don't know if the bank is going to pursue a deficiency judgment later and what happens if they pursue after my chapter 13 plan is in place? that's why I thought it might be better to surrender the properties during the BK filing that way I could list the 1st and 2nd's. what do you think?