My question involves a foreclosure in the State of: CA
I have a house that I have not made a payment on in 2 years. I filed for bankruptcy 1 1/2 years ago and they discharged my first mortgage along with my second HELOC in the bankruptcy. I thought this would be the end of the house and the bank would take it away.
The house is still in my name and the bank has done nothing. I have recently put it up for a short sale and have some interested buyers. However, I am now wondering about the tax ramifications of a short sale and getting a 1099.
Can I still be responsible for the 1099 if the loans were discharged in my bankruptcy? Can they make me responsible for the fees and interest that has accrued after my bankruptcy was discharged 1 1/2 years ago?
Should I just let it go to forclosure or would it be better for me to short sell?
The house will probably sell for $200,000 less than the loan amounts.
Thank you for any advice you can give on this matter.