Fannie Mae Wants to Settle Our Mortgage Debt for Less Than We Owe. – Dorrie

“Dear Steve, Reduced payoff and the mortgage is in good standing We have a house mortgage with SLM (Fannie Mae). We have been getting letters from them stating that we are eligible for a reduced payoff if we refinance with another Mortgage Company. Now mind you we are current and always been current (direct payment … Read more

Payday Lender is Threatening Me With a 1099-C IRS Form. – Julia

“Dear Paula, i recived a 1099-c form with a cover letter sayng they will report deffault paydayloan as ordinary incom and that they officialy had forwarded the 1099-c form to the irs and it tells mea settlement agrement i called them and the guy told me if i didnt want the irs to get the … Read more

My Car Was Stolen and I Got a 1099 for the Amount Written Off. – Darrin

“Dear Steve, In 2005 I had a vehicle stolen. My insurance paid the “value of the vehicle” to the lender, however there was $1,000 not paid. After much back and forth with the insurance agency and the lender the lender decided to write off the debt. Now January 2013 I received a 1099 for the … Read more

Can a Debt Collector Send a 1099-C on a Debt That Charged Off 5 Years Ago? – Regina

“Dear Steve, I defaulted on a credit card account in 2005. I was in a really bad situation. I didn’t even have enough money to eat, let alone pay this bill. I got calls about it for about a year. Then nothing. Occasionally I would get a letter or phone call, but that was it. … Read more

Capital One Sued Me and Lost But Issued Me a 1099 and Now I Have to Pay the IRS. – Paul

“Dear Jim, Capital one sued me on a debt and it was dismissed without prejudice , they didn’t show up. about 7 months later they sued me again. this time i hired a lawyer and it was dismissed with prejudice. they can’t sue me again..yay. now almost a year later. i get a letter from … Read more

Even in Death, Student Loans, the Debt That Keeps on Giving

The unfolding tragedy of student loan debt in America took an interesting turn recently with an article published in the Baltimore Sun and then repeated in the ABA Journal. Thanks to a reader that sent in the tip on the article we get a glimpse into reason 198 why you should never cosign for student … Read more

The IRS Sent My Payment Back Because of a Erroneous 1099. What Now? – William

“Dear Jim, Filed 1040A early & got my refund. Received a 1099-DIV form later in April. The form was showing an amount that was slightly too high. In order to avoid interest charges, i went ahead and made a payment calculating the tax i would owe using the current 1099-DIV form by April 15. I … Read more

There are Good Debt Collectors and Then There Are Debt Collectors That Lie, Cheat, Steal, and Threaten

A reader brought the following article to my attention, America’s Abusive Debt Collectors on the DailyBeast.com. It is an interesting look into some of the bad collection outfits by Gary Rivlin. Gary includes first-person accounts of some of the actions they were asked or required to do to keep their jobs as collectors. These bad … Read more

The Timeshare Canceled My Big Debt to Them. Now What? – Craig

Hi all, I’ve been cleaning up the last of my debt over the past couple of years. I was planning to go and settle with a defaulted Timeshare at some point. But on Friday I received a 1099-C from the Timeshare canceling my $9500 balance on my debt. While on the one hand this is … Read more