It was in 2023 and the lender did not do a 1099-C. The lender approved it by writting the payoff letter acknowledging the situation and stating he would accept the proceeds of closing. If the lender is not a business or bank, but just works for an unrelated nonfinancial industry employer, is not routinely in the business of lending money to people, but writes it off as a non business bad debt on his personal tax return, must he do a 1099-C? How do these facts affect my situation?
