Can you negotiate 1099-c

You might want to research the Mortgage Forgiveness Debt Relief Act of 2007. This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.

This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

It was passed earlier this month. This would eliminate having to negotiate again with the mortgage company as long as you are talking about your primary residence.

Good Luck!

That is crazy that they can take the amount forgiven as an income. I believe they can do it but I just think its crazy. You try to help yourself out and still someone has to get a portion.

You will recieve a 1099 and it will be reported as income if it is over $600, you must file it as income, they file it as a loss.

that explains some.

Does this only happen with the original creditor? I mean these collection agencies buy these old debts for pennies on the dollar and they are not the original one that is losing money on the debt so I don't think that they will be able to report it also right? The same debt can not be reported twice by the original creditor and the collector.

I can't understand that one ERB. You say the same debt can not be listed twice but I have two on my cr that list both the OC and the new debt collector. It says on the debt collectors listing who the OC is. On the OC report it list the debt was sold and transferred. That is what I was getting at on another post. It seems unfair that both can list. If I buy your repoed car from the bank for less than you owe how can both the bank and I list that on your report? Just an off the wall example. I just feel that once you buy something it becomes yours. This should be a factor in reporting debt.

The same debt can not be reported twice by the original creditor and the collector.

Not true.

The OC is entitled to report anything that happened up until the debt was sold, the CA reports activity thereafter.

Thanks for clarifying that Morningstar. Are they still looked at as one debt then? When the OC falls off due to SOL does the CA's listing fall off too?

The reporting timeline for the OC and the CA is the same--essentially seven years from charge off date.

I agree with morningstar on this point. Any listing, be it listed by the original creditor or the collection agency, will stay in your credit report for seven years from the date of your first missed payment. However hard inquiry listings will remain in your credit report for two years and bankruptcy listing may remain in your report for ten years.

On my OC there is no date listes as to when the debt will fall off. It just says closed at credit grantors request. The CA has the listing set to stay on until May 2010. So does that mean in May 2010 both listings will go off?

Don't the collection agency listing fall off when the original creditors report fall off. I would hope so, I mean, it could go way past the seven years if these fools can keep reporting the same debt that has fallen off. I would dispute the crap out of this situation.

I hope so. I am waiting for the may 2010 date and if the other doesn't fall off then I am going to dispute it as obsolete.

Your listing will automatically go off in May 2010 because the credit reporting agencies constantly upgrades your credit report. However, if they do not delete the listing from your report, dispute the listing and they will get it removed.

So is it at the date of the SOL ending or is it after this sometime?

Good question. I am glad they keep these things updated. Hopefully I won't have to dispute but if I do I will.