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Private loan foreclosure, do I need to have a 1099 prepared?
I am foreclosing on a private loan secured by a residential home. I privately financed the purchase of my home with a 100,000 loan (50,000) was put down. As I am foreclosing, do I need to have any sort of 1099 prepared. As this was a one time occurrence, and I am not in the trade or business of financing nor was the loan financed as a result of my trade or business I presume I do not need to file 1099-a or c. Any advice? Greatly appreciated!
1 Answer
- Anonymous10 years agoFavorite Answer
I doubt you are in the business of lending money (that is, not a bank). So, no you do not issue the 1099-A. You shuold provide the defaulting buyer with the same information that goes on the A.
1. How much the loan balance was at the time of the foreclosure.
2. The fair market value.
3. Whether or not you have recourse as a lender.
If you can sue for the deficiency, you should.