How can I tell if a home foreclosure was written off? 6 Answers as of April 07, 2011I cosigned on a home loan with my mother and we foreclosed on the home in 2009. She filed chapter 7 bankruptcy 2 years ago. It doesn't show up on my credit report. Can they still come after me for the home? How can I find out if it was written off?
Burnham & Associates | Stephanie K. Burnham
If a foreclosure occurred any time after 2007, it is likely that the debt was written off. The best way to be sure is to see if you receive a 1099 from the mortgage company. When the mortgage company writes off the debt it is considered income and they are required by law to issue a 1099. The mortgage company can still come after you for any shortfall, unless they issue the 1099 or you file for Bankruptcy to discharge the debt.
Answer Applies to: New Hampshire
Carballo Law Offices | Tony E. Carballo
If there was only one loan on the property and there was a trustee' sale then there is no liability of the deficiency (the amount owed less the amount received by the bank at the trustee's sale). If there was a second loan then you still generally owe the unpaid balance of the second loan. The bank may have written it off which means they took it off their accounting books and transferred it to a collection company or sold the debt to another company. You still owe it but not to the same bank. it may not be in your credit report because some of the companies that buy bad debt don't report it to the credit bureau or don't report it for a long time. Therefore, the fact that it is not shown in your credit report does not mean you do not owe it. Sooner or later you will be contacted about it or served with a lawsuit. Your mother will not be liable because of her bankruptcy but they will go after you. You may also have a tax problem since the bank is required to report cancellation of debt to the IRS using a form called 1099-C.
Answer Applies to: California