My question involves a mortgage in the state of: Virginia
My husband purchased a home in VA prior to our marriage, and defaulted on it while we were married in 2010. The bank/trust foreclosed (Deutsche Bank). At foreclosure the bank bought the home back and issued a 1099-C for the difference of what he owed and the amount the bank purchased the home back for (approx. $67k). My husband was (and is) insolvent, therefore, no tax was due on the debt forgiveness. A year later the bank finally sold the property for approx. $100k less than they purchased it back for. Very frustrating, since the bank would have received a lot more money had they accepted the short sale offer we worked so hard to get, instead of letting the property decline for a year. My question is whether the bank will go after my husband for either: 1. The additional $100k decline in value during the time the bank owned it and then sold it at a loss; or 2. The $67k for which the bank already issued a 1099-C. Do we need to "watch and wait" until all statutes of limitations expire? In addition, he has now moved to Maryland. Does that change anything? Thanks in advance for any guidance you can provide.