Foreclosure Surplus and Capital Gains

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Our home was foreclosed on, when it went to auction it was sold, the amount paid off the loan completely leaving a remainder amount of money in an county account. I received a letter from the county saying I could claim the remaining funds. The mortgage company filed a 1099? Is this legal?


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It is completely legal. When your home goes into foreclosure and up for auction, you are only responsible for the remaining balance of your loan. If the auction price does not cover the balance, you are required to settle the remaining balance. However, in your situation, the price exceeded the amount due, leaving you a surplus. Contact your county. You will receive a 10-99, and will have to claim it on your taxes.

Hope this helps!

Answered about 6 years ago
awhoke
17 1

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