The Mortgage Forgiveness Debt Relief Act

questions & answers

Question: Hoping I picked the right category. In January of this year (2017) I received a 1099-C from the bank cancelation of debt from a Home Equity Line. Does the bank need to release the lien or deed that was recorded when the HEL was established? How do I know they truely forgave the debt or if there is still some backdoor for them to collect should I sell or refi the home? I only received the 1099-C nothing else. And at the Maricopa recorders office no release was recorded. What do I need to do to have them release it. Is there a time frame that the bank is required to file a release?

Answer: If you received only a Form 1099-C for IRS tax-reporting purposes – the reason behind the debt cancellation will be indicated by a code in Box 6 (“Identifiable event”) – then you may wish to contact the lender, because you may still owe the lender money. If you would like to discuss your specific situation with an attorney, there are links to free or low-cost legal assistance on this website.

QUESTIONS

  • Hoping I picked the right category. In January of this year (2017) I received a 1099-C from the bank cancelation of debt from a Home Equity Line. Does the bank need to release the lien or deed that was recorded when the HEL was established? How do I know they truely forgave the debt or if there is still some backdoor for them to collect should I sell or refi the home? I only received the 1099-C nothing else. And at the Maricopa recorders office no release was recorded. What do I need to do to have them release it. Is there a time frame that the bank is required to file a release?

STORIES

  • If you get a divorce, make sure your date of birth is on the Decree if your name is changing!. . .
  • I just helped my mother, age 89, deal with her Medicare HMO. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .

LegalLEARN

YOUR FEEDBACK IS NEEDED

FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS