Lender Filed 1099-a in 2010 and then a Writ of Execution in 2012

[Gordon21]

My question involves judgment recovery in the State of: North Carolina

I received a 1099-A for tax year 2010. In 2011 the lender filed a judgement. In 2012 they filed a writ of execution to try to seize personal assets. In 2012 I filed the response motion to have my assets exempted. They totaled about $4500 and the court granted all items as exempt. The equity in my home was under $1000 and both vehicles are upside down with no equity. They granted those as exempt too.

The helpful clerk of court and the sherriffs deputy told me to expect to see the lender re-file every year for the next ten years and make me file responses every year.

Once a lender files a 1099-A, can they still continue to do this every year?

[flyingron]

The 1099 has nothing to do with their ability to pursue judgements. I assume we're talking about a foreclosure here? The 1099 isn't even a taxable event most likely (unless you have some capital gain on the property). It's obviously not (yet) a foregiveness on the loan (1099-C).

[Gordon21]

So a 1099-A has no effect on collections. If it had been a 1099-C, then the lender will cease collection activities, correct??
This was for a credit card, not a foreclosure.

We also had our home foreclosed in 2011, but never got anything from the bank and it has been 14 months now. We lost all our equity in the house when they took it. Should we expect to get a 1099 of some type from the house lender eventually??

[flyingron]

You got a 1099-A because the home was sold. The mortgage amount and/or equity is IMMATERIAL here. The question is if the sales price (as listed on the 1099-A) exceeds your basis (what you purchased the house for plus any capital improvements). If so, you owe capital gains.

If they forgive the loan (and forgo attempts to recover the information), you/ll receive a 1099-C for what is remaining owed.