On a 1st Mortgage refinanced, will the bank issue a 1099, if foreclosures 2 yrs after the re-fi?

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What is the current law on banks issuing a 1099 on foreclosed homes, if it was refinanced 2 yrs before the default, when its a 1st mortgage?
Will the bank try to make the homeowner pay back the amount of the refianced loan, when its a 1st mortgage?

  1. Reply
    real estate guy
    May 4, 2011 at 4:27 am

    Yes, the bank will come after you. Any laws are for the purchase mortgage. TALK WITH A LAWYER in your state

  2. Reply
    May 4, 2011 at 4:34 am

    Since you refinanced they can come after you. You can’t just stick the money in your pocket and walk.

    The 1099 is issued if they are not going to make you repay it, as you are keeping the money you need to pay income taxes on it.

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