Responsibility for Second Mortgage After Foreclosure in California

[xarshiax]

My question involves a mortgage in the state of: CALIFORNIA

I had a home that was foreclosed and was sent a 1099 on the 2nd loan.

1- I understand that the statute of limitations in CA expires 4 years from the last payment date which was some time in 2008. I fear if I file the 1099 on my tax return, this would be an acknowledgement of the loan and from what I heard, it would "reset" the statute of limitations on this loan?

2- Same question above, If I file the 1099 on my taxes, will this reset the 7 year Credit Reporting date (FCRA)?

3- I also have the homeowner's association filing a lawsuit to collect their money. The last payment was in 2007 and wanted to know, hasn't the statute of limitations expired on this according to California law? On what grounds can they still be suing?

[flyingron]

Was the second mortgage part of your original acquisition on the house (i.e., the 20 part of an 80/20) or one you subsequently took out.
If the former, you don't have to worry about any recourse after the foreclosure.

They have a short time after the foreclosure to obtain a deficiency judgement. This has nothing whatsoever to do with your last payment.

You don't FILE 1099's with your taxes. Whoever makes them gives one to you and sends one to the government. Unlike a W-2, you just voluntarily report the taxable (if appropriate) numbers. The 1099-A you get from the foreclosure, has no taxable bearing unless for some unlikely reason that the foreclosure amount exceeds your basis (i.e., you had a taxable gain on the sale). If they send you a 1099-C forgiving the remainder of the debt, that may be taxable (you may qualify for relief under the Morgage Forgiveness Debt Relief Act).

1099's have no bearing on when civil actions can be commenced or credit reporting. Your credit is trashed as a result of the foreclosure and the previous breach. Worrying about the subsequent deficiency is largely spurious.

What the HOA recourse is depends again on what actions they have already taken.