Deed In Lieu, Foreclosure And The 1099, Please HELP!
Hi,
I am a green card holder living in Europe for several years. I´ve purchased a condo in Florida as investment in 2005 and stopped paying about a year ago. I am dealing with the bank a deed in lieu but I realized it will produce a 1009 for aprox $160K. Question is: do I get a 1099 also in a foreclosure? As I live abroad, I dont really care about credit scores or even deficiency judgments, as I dont think they will pursue it in Europe. Then my only concern is the 1099, as I pay taxes to IRS every year and cannot escape that.
Please confirm,
Regards.
It is my understanding that a deed in lieu is deemed to be a sale for the balance of the loan. Thus, no deficiency and no forgiven debt.
You may want to confirm this with your own tax advisor.