foreclosure - bank buying and reselling?

[2muchstress]

i read about form 982... i was wondering, this home linked to indymac bank, i had it as investment purpose but lived inside of the house for one month, worked as a temp while at it, too. (long story short: tried to prepare for shortsale and indy later rejected; buyer gave up, didnt wanna wait anymore).

so... i wonder if i'm qualified for this form... seems like it has to be primary residence... i see something like 'insolvency' so does it mean if i dont have money to pay the tax in 2009, or is it the time when i filed chapter 7/discharged...?

sorry guys - im learning as i go, ive been overwhelmed with new info and realities bite sometimes -

thank you so much

[cleo1357]

I looked at the form, and read the explanation. You would check box 1a:

1 Amount excluded is due to (check applicable box(es)):
a. Discharge of indebtedness in a title 11 case

definition on page 3:
Title 11 case. A title 11 case is a case under title 11 of the
United States Code (relating to bankruptcy), but only if you are
under the jurisdiction of the court in the case and the
discharge of indebtedness is granted by the court or is under
a plan approved by the court.

The principal residence requirement is for those whose debt has not been discharged in BK.

That's how I interpreted the form. Anyone else? This is the first time I have heard of this form.

[HHM]

If you file BK after the home was foreclosed, then you should not receive a 1099-C (but if you do, simply do as Cleo1357 suggested with Form 982).

At for your credit report, you need to get the entry to reflect ZERO balance owed and the comments should say Included In Bankruptcy (IIB). Thus, you should really be reading in our Rebuilding Credit forum, there are many discussions about how to go about disputing entries.

[2muchstress]

Thank you!!! once, when someone said 'arm loan,' i was the type that questioned, arm? why not leg? huh? but after being ruined through the system set up (by trusting my sister who was a realtor, too), boy life turned into a tornato...

i lost my credit, and i lost sisterhood as she no longer cares to contact me after ruining my fate. but i will benefit by being stronger and now i know what arm loan does to people...

so yeap


thanks again and enjoy the weekend!