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IRS Form 1099 - Cancellation of Debt

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Junior Member
A lender issued an IRS Form 1099 discharging deficiency debt accrued after a foreclosure auction in 2013. (The value of the property failed to satisfy the foreclosure judgment resulting in a deficiency debt). NOTE: The property was not the borrower's principal residence.

1) Can Lender pursue the deficiency debt despite issuance of the form 1099-C?
2) Can Lender file a corrective 1099 claiming the debt should not have been cancelled?
3) Does it make a difference if the 1099 was issued but borrower failed to report the discharge as income?

Thanks in advance!
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