Is market value of rental property the asset value or equity the asset value?

[Dreamer]

Hello,

I had a house was foreclosed last year and I am trying to determine if I am qualified for insolvency to handle 1099C. 

House 1: 

owned 50%

foreclosed.

Bought: $360k

Loan balance: $300k

Market value: $185k

House 2:

Owned 50%

Still own but under process of foreclosure

Bought: $300k

Balance: $500k

Market value: $30k

In sheet, it asks for asset and liabilities. 

1. Under asset section, it asks for "Real property, including the value of land (can be main home, any additional home, or property held for investment or used in a trade or business)"

What would be my portion asset value? Is it market value asset value or equity(market value - loan balance) asset value?

2. Under liabilities section, it asks for "Mortgage(s) on real property (including first and second mortgages and home equity loans) (mortgage(s) can be on personal residence, any additional residence, or property held for investment or used in a trade or business)"

What would be my portion mortgage?

House 1: balance $300k/2 = $150k

House 2: balance $500k/2 = $250k

Total: $400k. is it my portion mortgage?

Please let me know if answer for number 2 is correct and what would be answer for number 1?

Thanks. 

[pk]

First  --- Asset Value is the Fair Market Value of the asset i.e. what an unrestrained buyer is willing to pay for it.  This goes in your assets column.

The loan balance  secured by the said asset is your liability and therefore goes into the Liabilities column

The equity you have on the asset is usually the difference between the FMV and the liability of the asset.

If you own only 50% of the asset then each of the above  should be 50% allocated to you. However, depending on the mortgage contract, you may each be severally and jointly liable for the whole amount outstanding. This is while the title document may allow you only 50% of the asset. Thus while you own only 50% of the asset, you may be liable for 100% of the liabilities. Please check these documents,

Hope this helps