I haven't blogged for sometime and I think maybe I sort of wanted to put the meltdown and the foreclosures past us. I realize though this cycle doesn't stop, it's happening now to people in the oil industry, and will happen again. As long as big banks have all the power and the people none: if you borrow money it can happen to you.
This week CHASE BANK sent us a 1099-C for $432,862.08. I'm sure they will call it an accounting error but I call it fraud! On the 1099-C they put "Date of identifiable event" as 03/04/2015.
Why does this matter? The event they are referring to was the short sale of our primary residence, which they agreed to March 21, 2012 with release of liens and no deficiency judgements. The house closed on 4/9/2012 which was the real identifiable event date. By law CHASE BANK should have filed that 1099-C by January 31, 2013.
So? There was a law passed in 2007 called the "Mortgage Relief Act of 2007", which offered relief to homeowners who would have owed taxes on forgiven mortgage debt after facing foreclosure, which we were. In 2008 this was extended by "Emergency Economic Stabilization Act of 2008" and again at section 202 of "American Taxpayer Relief Act of 2012"
Direct from IRS webpage: