topic I foreclosed on my home in 2009. I am on disability now. The mortgage company continues the debt. They won't go away. Please advise. in Deductions & credits

I foreclosed on my home in 2009. I am on disability now. The mortgage company continues the debt. They won't go away. Please advise.

vbillups — Tue, 10 Feb 2026 09:29:17 GMT

I now have a 1099-C

Re: I foreclosed on my home in 2009. I am on disability now. The mortgage company continues the d...

DawnC — Thu, 25 Jan 2024 23:39:16 GMT

The 1099-C means the debt has been cancelled or forgiven. There are instructions below to enter this on your tax return. If you received a 1099-C for your main home and another 1099-C for something else (like a credit card, car loan, or second mortgage) you won't be able to use TurboTax, as we don't support this. Assuming this is the only debt cancellation you received in 2023, you can file a return in TurboTax and include your 1099-C. You don't need to include any of your disability income if you do not normally file a tax return.

To enter your 1099-C:

Open or continue your return.
Search for 1099-C or 1099C (lowercase also works).
Select the Jump to link at the top of the search results.
On the Tell us about your canceled debt screen, select the type of canceled debt (main home or other) and then select Continue.
Go through the screens to answer any follow-up questions about your canceled debt.
Follow the instructions to enter info from your 1099-C.

Re: I foreclosed on my home in 2009. I am on disability now. The mortgage company continues the debt. They won't go away. Please advise.

Opus 17 — Thu, 25 Jan 2024 23:44:46 GMT

Once a lender has issued a 1099-C, it is against the regulations for them to continue collection efforts. You could try reporting them to your state banking regulator if that's what is happening.

The 1099-C is supposed to give the date of the "identifiable event" in box 1. This is the date that the lender recognizes as the date the debt officially became uncollectible. It could be the date of the foreclosure or just the date they gave up. If the date is in 2023, you can report it on your current tax return. There is a procedure where, if the debt was due to foreclosure on the home you lived in as your main home at the time, the forgiven debt does not have to be taxable. But you need to report it and work through the interview.

If the date in box 1 is for a date before 2023, then you can't report it this year, you would need to report it on an amended return for the correct year. You may want to see a tax professional. There are some (fairly tricky) rules on 1099-Cs, and issuing a 1099-C 15 years after the foreclosure may be improper. But you would need someone to help you with that.