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.