Q: Question about foreclosure and deficiency judgment and tax forms
My primary residence in New Jersey was foreclosed on and went to sheriff sale. The same bank held the first mortgage position and a second mortgage position on a HELOC. The foreclosure action included both mortgages in the one action. The final judgment included both mortgages as did the Writ of execution. I had a court filed agreement from the bank, which stated they would waive their right to a deficiency action in the matter. I just received a 1099A for the HELOC. I did not receive anything for the first mortgage. My questions are: can the bank come after me for a deficiency judgment? the 1099A leads me to think they may try. should the bank send me a 1099C or something for the first mortgage?
This was my primary residence and it was located in New Jersey. Thanks for any help you can provide
A: The 1099A is not the same as a deficiency. After foreclosure, I always recommend that income taxes are prepared by an accountant to protect you.
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