Our house was written off by the bank... now what (long question)?When my husband was in the Army, we bought a house at one of his duty stations thinking that it would be a good investment. He got out of the military right as the economy was crashing in 2008, and we moved to our home state across the country from the house. Unfortunately, our home state was one of the hardest... |
The bank foreclosed and wrote off their loss. You do not get to phuck them over and keep the house. Very funny.
You should be receiving a 1099 for the write off amount, they wrote it off and you pay income taxes on it as that was the money they were unable to recover.
If you try to rent it out now you will be committing a felony and both of you will end up in prison.
You need legal advice from a real estate attorney in the state where house is located. You need a title search, and contact with the bank. Since the house was not your primary residence at the time of foreclosure, you are liable for the shortage over what you owed the bank and what they did not get in selling the house. If they chose not to chase you for the deficiency amount, You will be issued a 1099 which means the shortage/write-off amount will be treated as income on your taxes, and this is a problem since there's no withholding from it.
It is unlikely you are now the owners, but your post, though long does not have the legal terms and events.
There is just to much to know before anyone can answer your questions. Which state is the house in, what type of loan, was it refinanced, is there a 2nd mortgage, what actually happen to the house. TALK WITH A LAWYER. Even if the bank doesn't come after you, the IRS may require you to pay taxes. TALK WITH A LAWYER.
The first thing you should do is have a title company do title search to determine who owns the property. It's probably been foreclosed upon and the bank has written the loan off and isn't pursuing a deficiency judgment.
realtor.sailor
