Deed in Lieu/Foreclosure and the 1099

[paparulo]

What is the name of your state (only U.S. law)?

Hi,
My cousin is a green card holder living in Europe for several years. She purchased a condo in Florida as investment in 2005 and stopped paying about a year ago. She is dealing with the bank a deed in lieu but she realized it will produce a 1009 for aprox $160K. Question is: do you get a 1099 also in a foreclosure? As she lives abroad, she doesn´t really care about credit scores or even deficiency judgments, as they will probably won´t pursue it in Europe. Then the only concern is the 1099, as she continues to pay taxes to IRS every year and cannot avoid that.
Thanks in advance.

 

[HomeGuru]

What is the name of your state (only U.S. law)?

Hi,
My cousin is a green card holder living in Europe for several years. She purchased a condo in Florida as investment in 2005 and stopped paying about a year ago. She is dealing with the bank a deed in lieu but she realized it will produce a 1009 for aprox $160K. Question is: do you get a 1099 also in a foreclosure? As she lives abroad, she doesn´t really care about credit scores or even deficiency judgments, as they will probably won´t pursue it in Europe. Then the only concern is the 1099, as she continues to pay taxes to IRS every year and cannot avoid that.
Thanks in advance.

**A: is she prepared to get a 1099 if the lender gives her one? Lenders generally issue a 1099 for the deficiency. Does she know how it will affect her taxes?

 

[candg918]

Given that a permanent resident has to reside in the US, she may have lost her green card by failing to do so for several years.

 

[paparulo]

1099

She still keeps the green card as she travels to the US once a year (condition enough to keep it + paying income taxes every year).
She would like to do whatever to avoid the 1099 (a $160K tax bill at a 30% tax rate means taxes for $48K due..)
Any idea?
Rgds,
p