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  1. #1
    Join Date
    Sep 2011
    Posts
    7

    Default Debt Cancellation on a Home Equity Line of Credit

    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.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Debt Cancellation on a Home Equity Line of Credit

    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.

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