NLIC.org

Claudia Said:

The Lender gave me a 1099 after they reposed my house, does it mean I own it free and clear?

We Answered:

Well what's fair?
You bought a house and agreed, promised lender to pay the mortgage
You didn't fulfill your promises to lender, you breached your agreement
Lender foreclosed on home (homes aren't repossessed) and took property
If they can sell it for the mortgage they gave you they'll be very happy, but in Michigan it's unlikely. . . .IF they sold it for a profit, they will cover their huge costs in foreclosing against you, maintaining home until sale, and pay you anything left over. . . .
You got a 1099 because you owe them the mortgage amount and haven't paid it and that amount is being forgiven. . . .they won't be chasing after you to pay what you promised to pay them. . . .thus you have received benefit, the forgiving of the mortgage amount

You can offset it with certain expenses. . . .suggest you see a tax professional to discuss your options now rather than in April

You own nothing--your rights in home were extinguished in foreclosure

Holly Said:

I want to refinance from a balloon to a 15 year fixed rate mortgage?

We Answered:

You only pay PMI when you are borrowing more than 80% of what you appraisal comes in at. If your house really is worth $95,000, you could borrow up to $76,000 without PMI.