Foreclosure and taxes

[adviceplease]

Our house went up for sheriff sale in Dec 2011, we stayed in the home on redemption until March 2012 but had "ownership" until the end of June 2012. The home was included in Chap 7 bankruptcy in May 2010 with stay and pay until the foreclosure.

Do we need to wait to see if the bank or the city we resided in sends us something to file on our taxes? We did not receive anything last year but not sure how it works since we were in the house still in 2012. Thanks!

[TBA]

not sure where you are, but i am pretty sure that the taxes attach to the property in fla - they do not attach to the owner... Hope that helps -

You can also check the property appraiser website and confirm if they have been paid - again in fla - it is public record.

[ValleYum]

If you did not make a payment in 2012, you will not receive a 1098 from your lender. The year we made payments through part of the year, we did get one for those months. Also, if you did not actually pay the city/county taxes yourself, you should not use them as a deduction.

Good luck!

[adviceplease]

Thank you for the replies, I figured we wouldn't be receiving anything but I just wanted to make sure.

[chiwawa]

I filed CH7 the house also included in BK; CH7 was discharged on Feb-2012. Stop mortgage payment Nov-2011 the house foreclosure Trustee sold the house on Nov-2012. Lender just sent me form 1099-A. Box #2. $520000. Box #4. house sold fair market value $450000. Also said "borrower personally liable for repayment of the debt". Does I have to pay income tax for the different amount?
Thank you all.

[tobee43]

no you do not have to pay as long as you listed the mortgage in your bankruptcy petition and did not reaffirm.

just have your accountant attach a tax form 982 to your return and you are fine. the 1099A's (which are applicable to mortgage write off's) are also the banks way of informally notifying the irs of THEIR (the banks loss). they may even check mark you are liable, but the form 982 will clarify your insolvency by proof of your filing of your bk.

[tobee43]

not sure where you are, but i am pretty sure that the taxes attach to the property in fla - they do not attach to the owner... Hope that helps -

You can also check the property appraiser website and confirm if they have been paid - again in fla - it is public record.

one can usually rest assured that banks will not allow their properties to go into tax sale, really in all states. so banks or most banks keep up the taxes as well as an umbrella insurance policy to protect the property from fire, etc.

however, the HOA fees and dues and assessments can carry over after the completion of your bk in florida.