I Got a New 1099-C on an Old Mobile Home That Was Repossessed. – Donna

“Dear Steve,

Purchased a mobile home in 1996 with a mortgaged amount of 47000. Mobile home repossessed in 2003. My husband and I separated in May 2002. He refused to help pay any debt (mortgage, credit cards, etc). I immediately called the mortgage company to ask for help. They refused. I paid the note until August because by then I determined I would have to make other living arrangements in anticipation of the repossession.

The mobile home was repossessed and moved off the property in August 2003 by Oakwood Acceptance. They sold it for 9500. I never heard anything else from them. I have now (for the 2012 tax year) received a 1099c for 40,000 dollars from Vanderbilt Mortgage.

I know I received some form letters in the mail probably 5 years ago from them, The boxes for Fair Market value, qualifying event, etc are blank. I sent a letter to the address on the 1099c requesting the full information and how they acquired this in order to be issuing th e 1099c 9 years later, but have not received a response.

How do I handle filing in this situation? If it had been issued in any year from 2003 until 2009/10, I would have been able to file insolvent. It was my primary residence then, but 10 years later I can’t take advantage of that either.

My tax preparer has (on a preliminary consultation), advised me that even though I have filed every year since 1979, in a timely fashion, because this was issued for the 2012 tax year, I must use my current circumstances when filing. Since I am now in a 25% tax bracket, I am looking at approximately 10,000 in tax debt on this that I do not have the means to pay. HELP!

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.



Dear Donna,

You should read How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598.

You might want to forward that link to your tax preparer as well.

See also  How Does a 1099-C Impact My New Tax Filing Status?

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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