My question involves a mortgage in the state of: Florida
Does a 2nd mortgage lender in a Foreclosure have to file a Cancellation of Debt (1099-C) with the IRS the same year of the Foreclosure Sale or can they cancel the debt anytime.
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My question involves a mortgage in the state of: Florida
Does a 2nd mortgage lender in a Foreclosure have to file a Cancellation of Debt (1099-C) with the IRS the same year of the Foreclosure Sale or can they cancel the debt anytime.
In Florida, they have recourse. There's no requirement that they forgive the loan or file a 1099-C until they decide they don't want to try to collect it anymore.