Is a FORECLOSURE a BETTER OPTION than a SHORT-SALE in a Non-Recourse, Anti-Deficiency state?
I’m hearing that it may be better to just the let the house Foreclose, and that way I will get a 1099A, which is supposedly better than a 1099C?
I hear that the 1099A is NOT a “Debt Forgiveness” and therefore a different kind of 1099, and being in a Non-Recourse, Anti-Deficiency State, that would be better than the 1099C, which is “Debt Forgiveness.”
What led me to ask the question and is making me think a Foreclosure is BETTER than a Short-Sale in Non-Recourse, Anti-Deficiency Arizona is this post by someone…
“On a Short-Sale, the forgiven debt (Deficient Balance) is treated as INCOME by the IRS, and on a Foreclosure, the Deficient Balance is still debt, so the IRS has NO Jurisdiction over it for the purpose of calculating your income.”
A foreclosure is going to look a WHOLE LOT WORSE on your personal credit report (for the 7 years that its there) vs being a few months behind on your payments and doing a SS (of which the late payments can probably be cleaned off your report with a good credit repair company)
Thanks, but I’m less concerned about my Credit than I am having to PAY a huge Tax Bill on a 1099.
My question is about the 1099’s.
I hear that the 1099A which you get from a Foreclosure is NOT a “Debt Forgiveness” and therefore a different kind of 1099, and being in a Non-Recourse, Anti-Deficiency State, that would be better than the 1099C, which is “Debt Forgiveness.”
IS a 1099A BETTER than a 1099C in a Non-Recourse, Anti-Deficiency State such as Arizona?