My question involves a foreclosure in the State of: Minnesota
Our primary residence was foreclosed on in 2009- the redemption date was 10/26/09. The house is still empty, has not been put on the market yet to resell.
We just received a 1009-a
box 2. balance of principal outstanding was 203,000.
Box 4. fair market value was 225,000.
Box 5. personally held liable, yes was checked.
My question is - in all the research I have done on the IRS website usually the FMV is less than the principal amount owed. Will we have to pay taxes on this? We should qualify for the mortgage forgiveness act of 2007, as it was our primary residence and the situation was beyond our control, and we tried to work with the bank- even working with our local CDA and MN Dept of Commerce.
I have checked into the state statutes and MN conforms to Federal.
I had also read that if the lender sends you a 1099, that they cannot come after you for the deficiency...is that true?