State Courts turning the Corner on two Wheels in Favor of Homeowners Tune in to Neil Garfield tonight 6pm EST

Click in to tune in at The Neil Garfield Show

Or call in at (347) 850-1260, 6pm Eastern Thursdays



As two more decisions come out from the Florida 4th DCA there is plenty of hope for current and former homeowners. The US Supreme Court on TILA Rescission was especially helpful — reversing hundreds of court decisions across the country. Tune in tonight and we’ll answer your questions about TILA Rescission and proof at trial in foreclosure cases.

18 Responses

  1. After an abandonment claim, overpayment… and a request to my husband for admissions of certain tax exempt foreign status.. I still await any tax documents from them this year .. so far Nothing. No 1098 or 1099. Pfft. Leaves a bad taste in my mouth. Another lawsuit? They ask and they shall recieve… Right Christine? 🙂

  2. I will use the driving analogy. If I get a speeding ticket from a police officer using his/her Speeding gun. They must show in court that they calabrated the Speed gun and used it properly. Or if a police officer uses the pacing procedure the Officer must show that he/she was properly trained and how they paced my car. This doesnt take more than a half an hour in court.

    Apparently in California this does not apply to non judicial foreclosures. Anything goes according to some Judges and even Appellate court Judges in California. Robosigning etc…. is fair gaime for the so called lenders.


  3. And Java,

    Consult that site from jellybean. Don’t consult any tax lawyer unless you have questions you and I can’t answer. You still have my e-mail. Go for it. You know I’m available.

  4. Java,

    I misread you. Upon rereading you, you did mention 1099-A. That, you can ignore and not fret over. If it ever turns into a 1099-C, then you must attack on the basis for it. 1099-A are nothing to worry about and nothing to report, for what you are concerned. Do not fret.

    My apologies.

  5. This has some very basic information on what to do with the 1099A. Also consult the IRS website. I still recommend a tax lawyer.

  6. I’ve been told that a 1099A is for informational only and doesn’t need to be reported (this is for A not C)…..I may still receive a 1099C, though its unlikely.

    Still I have serious issues with this 1099A”information” showing FREDDIE as lender. They lent me nothing !!!

  7. The EIN on the 1099A I received actually was in the PSA filed with the SEC. It was NOT the servicer – it was an entity in the PSA.

  8. Jan Van Eck,

    It is actually the angle I’m attacking from, after receiving a 1099-C on a federal court judgment, on damages for violations of law. Servicer dared report the entire judgment (damages and attorney fees he was compelled to reimburse me for by court order) as a loss with the IRS.

    I’m all over servicer, demanding a retraction (one has 30 days to contest the 1099-C in writing, via RRR).

    Next step is to sue. Again. The way I see it: if I commit a driving violation when in my car while conducting business, and if I get a ticket, I am not allowed to deduct it as a business expense. If I refuse to pay the fine and choose to go to court and fight the ticket, and if I lose in court, I am not allowed to claim the entire fine as a business expense. Fair enough.

    Likewise, if servicer gets a court judgment for violation of law, is ordered to pay damages and reimburse me for attorney fees and he subsequently reports all of it as a “loss” while issuing a 1099-C against me for “income received”, I attack so hard servicer will wish he never heard of me. And I am Oh so ready for that fight!

  9. The reason you are receiving a 1099 is that “someone,” whomever the issuer really is on the other end of that taxpayer ID number {and it is the identity of the number-holder, not the name in the box, that counts, as these things are all computerized} is taking an offsetting tax deduction from taxable income for the same amount. The amount on the 1099 is treated as a “business loss” and thus becomes “imputed income” to you, even if you never received the funds, or the benefit of the claimed business loss.

    Let us say that you do nothing and are immune from tax assessment consequent to “Mortgage Debt Relief Act.” Then you get charged nothing, but the pretender issuer gains a nice tax deduction, in effect shielding other earnings equivalent to your amount from taxes. Assuming a net marginal tax rate of 50%, then whatever that number in the 1099 box is, by doing nothing you hand your abusers that sum in net cash.

    Since you are exposed to a taxable imputed-income charge, due to their uttering of a falsified document, you should be able to sue the issuer (which is that malicious servicer that has been oppressing you). Your damages, on the count of Uttering, are the amount of funds represented in that slip (presumably there are other damages as well, on other counts). Since it is procured by a knowing deceit, and under your State laws you are classified as a consumer, your State consumer protection and “unfair trade practice” laws should apply. You ask for treble damages plus attorney’s fees, as under the unfair-trade acts those fees are payable by the offender (and there is a cottage industry out there of attorneys that sue these abusers as they can collect full fees from the bank). Sock it to them.

    Revenge is a dish best served cold, as they say in Klingon.

  10. Hey Jellybeans :You are correct, read the publication.1099-C too is included…just got one for 2014 with BOA.

    And Java….BOA is/was the servicer, not the lender on mine. BOA buyout from CWHL, 2008 I think….for approximately $450.00… servicing rights ONLY, no collateral assignment needed…go figure!

  11. Java,

    Jellybean is absolutely right that there are forms you can fill out to try an extirpate yourself from paying and that you can attach to your 1040. Note though that Jellybean seriously qualifies her answer:

    “I suggest you talk to a tax lawyer.”

    “the canceled amount may be taxable”.
    “…generally allows taxpayers to exclude income from the discharge of debt”
    “The exclusion does not apply if…”

    You absolutely should consult Publication 4681. I will read it too. Once we both have, we’ll compare notes on our understanding of how it applies to you. You have my e-mail. We can work on it together. Understand one thing, though: in order to mitigate your 1099-C tax liability for a FC, you have to file a 1040 since those forms provided for in publication 4681 can only be filed as part of a 1040.

    Write me, send me your papers and let’s talk. Once you know everything, you’ll make your decision.

  12. To Java
    the reason I suggest you go to a tax lawyer about your 1099A is that I think lay folks may not be up to speed on all the IRS laws. For instance, I hear no discussion on LL about the following from the IRS website:

    The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

    If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

    The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

    This provision applies to debt forgiven in calendar years 2007 through 2014. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not 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.

    More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

    The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

  13. To Java
    I suggest you talk to a tax lawyer.

  14. And not all Judges are crooks. But alot of them are taking our basic human rights causing a financial holocaust.


  15. We have robosigners who are helped by Rocket docket Judges. Sounds like a science fiction movie or a George Orwell book.
    We live in a totalitarian country.


  16. Christine. Please email when you have a chance. I could use some help/info from you. But there is NO Fear here.. None !

  17. Java,

    You have three choices here, in front of a 1099-C:
    1) Ignore it, not acknowledge it on your tax return (if you do one) and risk big. IRS agents have received that 1099-C. They believe you owe it and they can make your life miserable if they know that you fear them (and they have guns they’ll use to bully the fearful. Compliments of taxpayers, by the way… and Congress you elected.)
    2) Report it as “income” and be liable for the tax liability. Remember: filing taxes is voluntary. You file, you owe. If you file and report, you must pay. If you don’t have the money but already acknowledged you owe, they take everything they can: fair game, you already admitted to owing.
    3) Prepare for your next fight by documenting, documenting, documenting. How do you do that? By sending immediately an RRR letter to the sender, contesting that 1099-C and outlining the reasons therefore. And then, you prepare for the fight of your life.

    Getting upset is human. I know how you feel and I know the fear that thing can generate. Don’t allow that fear to get the best of you. If you need a better understanding, ask me. I’ll send you a mountain of info.

  18. Next issue on the fraud rollercoaster.

    1. 1099-A just arrived. Shows FREDDIE Mac as Lender !!!!

    2. FREDDIE phone # listed on 1099 goes directly to servicer.

    3. Shows balance of principal , although was paid in full by sheriff sale.

    Anyone care to guess, what these corrupt frauds are trying to do here with these lies on 1099-A??????

Contribute to the discussion!