The bank holding your mortgage is required to file with the IRS Form 1099–C, Cancellation of Debt (COD), reporting the amount of COD to be included on the individual’s tax return.  The COD amount may include unpaid principal, accrued interest, penalties, and attorney fees.  If you are insolvent under state law when you default, the amount of COD is not considered income.  If you are working on a SHORT SALE, negotiate with the lender to waive the deficienc altogether.  I am not a CPA, so please check with your advisors.

I am a certified distressed property expert; we sell many Ann Arbor short sales. 

In the Ann Arbor Real Estate Market, many great people are finding themselves in this situation. We have a packet of information you can review if you want to be informed. If you or someone you know finds yourself in this spot, we'd be grateful if you'd let them know about us. We promise to provide them with THE best and caring professional services. 

We have many distressed properties for sale. 

Click here to search all listings in Michigan with pictures and tours - FREE! 

 

 

 

 

 

Kathy Toth and Team  Ann Arbor Market Center