Legal

Ask a lawyer and get answers to your legal questions

Ask a Lawyer,
Get an Answer ASAP!

Can I be sued for foreclosing on rental properties or made…

Customer Question
Can I be sued for...
Can I be sued for foreclosing on rental properties or made to pay the remainder of the loss the bank sold it for?
Submitted: 8 years ago.Category: Legal
Show More
Show Less
Ask Your Own Legal Question
Answered in 13 minutes by:
6/18/2010
Lawyer: LEV, Retired replied 8 years ago
LEV
LEV, Retired
Category: Legal
Satisfied Customers: 33,258
Experience: Taxes, Immigration, Labor law
Verified

Generally - as long as mortgage obligations are signed - the borrower is responsible for the amount of the loan.

 

Some states (so-called - no-recourse states) have a law preventing banks from pursue you for their financial losses if they foreclose on your property.

 

Not in Alabama... in Alabama the lender may get a deficiency judgment.

Your only way to negotiate with the lender about forgiveness of the debt.

In most situations - expenses to collect the debt might be so high that the bank agrees to settle.

 

The amount of the forgiven debt is reportable on 1099-C - http://www.irs.gov/pub/irs-pdf/f1099c.pdf - and, generally, is taxable, unless an insolvency exemption apply -- you should file a form 982 - to proof the insolvency - and might exclude all or part of canceled debt from taxable income.

Please see the IRS Publication 908 Bankruptcy Tax Guide - http://www.irs.gov/pub/irs-pdf/p908.pdf - with example of the form 982 on the last page.

 

A debtor is insolvent when, and to the extent, the debtor's liabilities exceed the FMV of the assets. Determine the debtor's liabilities and the FMV of the assets immediately before the cancellation of the debtor's debt to determine whether or not the debtor is insolvent and the amount by which the debtor is insolvent.

Insolvency is determined by filing the form 982.

 

Let me know if you need any help.

 



Edited by LEV on 6/18/2010 at 6:21 PM EST
Ask Your Own Legal Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask LEV Your Own Question
LEV
LEV
LEV, Retired
Category: Legal
Satisfied Customers: 33,258
33,258 Satisfied Customers
Experience: Taxes, Immigration, Labor law

LEV is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

24,658 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

22,843 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

44,266 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo Senmartin

Guillermo Senmartin

Lawyer

301 satisfied customers

Principal Attorney at Guillermo J. Senmartin, P.A.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

17,183 satisfied customers

Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

< Previous | Next >

Related Legal Questions
Hi About two years ago east West Bank foreclosed On my property
Hi About two years ago east West Bank foreclosed On my property it was a commercial I owed about $425.000.00 two month later they sold it For about 600.000.00 there is anything can be done after two y… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
38,228 satisfied customers
My home was foreclosed on. I owed $640K on the 1st loan and
My home was foreclosed on. I owed $640K on the 1st loan and had a home equity loan with an outstanding balance of $40K. The home was sold at foreclosure for $650K. Am I still responsible for the 2nd l… read more
Lady Themis
Lady Themis
Attorney
Doctoral Degree
65 satisfied customers
a friend of mine had a house in az that was "foreclosured"
a friend of mine had a house in az that was "foreclosured" on in june of 2011. the bank took the house but is now sending my friend papers saying that they still want to modify his loan...what is to b… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
My property was sold but I have not been contacted by anyone.
My property was sold but I have not been contacted by anyone. Can I stop foreclosure with bankruptcy. Also do my Rental Agreements become void at sale auction or new owner closing.… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
I had a rental property in Idaho and live in California with
I had a rental property in Idaho and live in California with a first and second. I took out the 2nd a few months after purchasing the property. The property was foreclosed on Feb. 2010 and now the ban… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
I own a rental property. I owe about 35,000 on it. I have
I own a rental property. I owe about 35,000 on it. I have had major problems with rentors and do not have money to pay the payment, and the utilities and the taxes. I have talked to a couple of Bankru… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
In Arizona.. If a residence is sold as a short sale, is the
In Arizona.. If a residence is sold as a short sale, is the difference between the sale price and the mortgage amount forgiven, or is the home owner still liable for the difference? Same question if t… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
If I foreclose on my rental property in Arizona. Will I be
If I foreclose on my rental property in Arizona. Will I be taxed on the loss the bank takes? Also, can the banks call me at work to try and collect my payments. Thanks so much for your help! Have a wo… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
I have a question on a mortgage I gave my business partner.
I have a question on a mortgage I gave my business partner. He build two town houses and I gave him about 200K for both as second mortgage. One got sold and he paid me half of the mortgage. He has the… read more
JBaxLaw
JBaxLaw
Attorney
Doctoral Degree
8,080 satisfied customers
we recently moved to Buford, ga from nashville tn (May to be
we recently moved to Buford, ga from nashville tn (May to be exact) Our lease has a no move clause and now my husband's company has informed us we will need to relocate for him to keep a job. I have n… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
I OWN A HOUSE WHICH IM UPSIDE DOWN ON. I BOUGHT A NEW HOUSE
I OWN A HOUSE WHICH IM UPSIDE DOWN ON. I BOUGHT A NEW HOUSE VERY CHEAP,WHAT WILL HAPPEN IF I STOP PAYING ON THE FIRST HOUSE? can they come after my new house? what should i do??????? thanks… read more
KimberlyLaw
KimberlyLaw
Principal Attorney
Master\u0027s Degree
3,911 satisfied customers
Our Church was foreclosed on by the bank over 6 months ago.
Our Church was foreclosed on by the bank over 6 months ago. Today myself along with all the guarantors were served summons to court by the sheriffs office. I thought the foreclosure was the debt and t… read more
GoLaw
GoLaw
Doctoral Degree
751 satisfied customers
I have an investment property (rental house) which I owed about
I have an investment property (rental house) which I owed about $240,000 but now worth only about $160,000. The rental income does not cover the mortgage. Some have suggested to me to walk away and le… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
hi my name is XXXXX XXXXX I have a question concerning a rental
hi my name is XXXXX XXXXX I have a question concerning a rental issue i am having with the foreclosed home that i am currently renting. i have recieved the trusty sale posting on my door my land lord … read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
A week ago a summary of the banks intent to foreclose on my
A week ago a summary of the bank's intent to foreclose on my rental property was presented to the court. Do I still have time to sell the property back to the bank? The property has been in the hands … read more
socrateaser
socrateaser
1,031 satisfied customers
we have 4 properties, one is primary residence and 3 are rentals.
we have 4 properties, one is primary residence and 3 are rentals. all of the first mortgages are with Bof A, two of the rentals have 2nd mortgages again with Bof A. The 2 rentals with 1st and 2nd mort… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
If I foreclosure my rental property, can the lender take my
If I foreclosure my rental property, can the lender take my bank acount money? garnish my wage? or can they lien my own home?… read more
Attorney & Counselor at Law
Attorney & Counselor at Law
Managing Partner
Doctoral Degree
865 satisfied customers
my name is XXXXX XXXXX i live in Georgia and I had a ...
my name is XXXXX XXXXX i live in Georgia and I had a motorcycle repoed I would like to know the law on paying back the amount left owning after thay sell it… read more
KimberlyLaw
KimberlyLaw
Principal Attorney
Master\u0027s Degree
3,911 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x