diverjasongray
Junior Member
Las Vegas Nevada
I am writing this as a means of assisting my aunt and uncle who have a strange situation.
They owned a home in Las Vegas Nevada and during the bubble, they both found themselves unemployed. Mortgage payments were missed. They received a notice on their door that said they would be evicted the next day if they didn't pay. They left.
They filed for bankruptcy months later and everything was discharged including their first and second mortgage.
Here is where it gets tricky...
The mortgage company never actually foreclosed on the house. My aunt and uncle's name were on the title even after the debts had been discharged. A realtor, years later, contacted them and informed them their name was still on the deed and she would like to help short sale the home to get their name off of the property. Their was a buyer lined up who ended up buying the home. During this time, the deed to the home could not be found. It took months to process. But eventually it was and the deal finalized.
This years tax season bought them a new surprise when they received a 1099 for a forgiveness of debt. As I understand it, they had no interest other than their name on the deed in the property, and they are now hit with a large tax bill. I am just looking for a little advice on how to proceed and assist them.
I think it was absolutely foolish for them to even agree to the short sale. They should have contacted the mortgage company and asked to have their names removed from the deed.
Any assistance would be greatly appreciated.
J
I am writing this as a means of assisting my aunt and uncle who have a strange situation.
They owned a home in Las Vegas Nevada and during the bubble, they both found themselves unemployed. Mortgage payments were missed. They received a notice on their door that said they would be evicted the next day if they didn't pay. They left.
They filed for bankruptcy months later and everything was discharged including their first and second mortgage.
Here is where it gets tricky...
The mortgage company never actually foreclosed on the house. My aunt and uncle's name were on the title even after the debts had been discharged. A realtor, years later, contacted them and informed them their name was still on the deed and she would like to help short sale the home to get their name off of the property. Their was a buyer lined up who ended up buying the home. During this time, the deed to the home could not be found. It took months to process. But eventually it was and the deal finalized.
This years tax season bought them a new surprise when they received a 1099 for a forgiveness of debt. As I understand it, they had no interest other than their name on the deed in the property, and they are now hit with a large tax bill. I am just looking for a little advice on how to proceed and assist them.
I think it was absolutely foolish for them to even agree to the short sale. They should have contacted the mortgage company and asked to have their names removed from the deed.
Any assistance would be greatly appreciated.
J