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Have you called your bank that has the second to see if the extinguishing agreement is legit?
yes, that would be GMAC.
And GMAC said that the notice is correct?
How much was the second for?
I'm concerned about the tax situation
Okay, if GMAC is saying that it is extinguishing the note, and if you have written proof, then I would write them a letter explaining that: According to the extinguishing agreement dated June ??, 2012, I am no longer obligated to pay any money for loan # XXXXX (whatever the loan number is) for the second mortgage on my house located (input your address). If I am wrong in this assumption, or if this letter was sent to me by error, please contact me within 30 days of this letter via certified mail. If I do not receive any notice, then I will discontinue any further payments.
However, you are correct, you can have a tax implication for the $80,000 forgiven by GMAC.
Are you current on the note?
even if it is where I live? That would then be considered income?
Yes sir. It might not be consider actual income, but it will be considered revenue of one type or another.
Can you make any payments whatsoever?
thank you for your time.
If you can, I would start making payments to a savings account just in case. However, financial institutions do not always send out the 1099s for the loss income, it's kind of crap shoot.
I know of several people who did not receive a 1099 for the income, but some people have. It just depends on the bank.
Do you have any further questions? I would be more than happy to continue to answer if you do?
no thank you.