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bizmatters, Attorney
Category: Tax
Satisfied Customers: 1132
Experience:  Licensed Practicing Attorney
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I was granted a deed in lieu of foreclosure a few months ago

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I was granted a deed in lieu of foreclosure a few months ago from my mortgage company. they said all I have to do now is wait for the 1099. They are now selling the house for 100,000 less than I owed. Are they going to send me a 1099 for 100,000 ?What should I do?

Dear renternow,


Thank you for your question.


The 1099 should equal the amount of forgiven debt. However if this is your primary home, and the entire debt was for the purchase or repair or improvement of the home, then you can exclude the entire amount by using the following form when you file your taxes.



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