The Form 1099 may be income received related to your mortgage, debt which was discharged, or another event reportable to the IRS which took place during the year. There are several different types of 1099 forms, but you will only receive a form applicable to you.
- Form 1099-A (Acquisition or Abandonment of Secured Property): Issued when a foreclosure, or similar event occurs. The IRS requires this form if we acquired an interest in the property or has reason to believe the property was abandoned.
- Form 1099-C (Cancellation of Debt): Provided when a debt of $600 or more is canceled, forgiven, or discharged. This includes principal forgiveness as part of a loan modification.
- Form 1099-INT (Interest Income): Issued if your escrow account earned $10 or more in interest during the year. If you didn't receive this form, it may be because:
- Your earned interest was less than $10, or
- The interest was paid on or after January 1, in which case it will be reported next year.
- Form 1099-MISC (Miscellaneous Income): Sent if you received $600 or more in cash benefits during the year. This includes:
- Payments made to occupants of a property in foreclosure to vacate (e.g., Cash for Keys or relocation assistance), reported in Box 3.
- Other payments such as rent, attorney proceeds, or miscellaneous income of $600 ore more.
You will only receive the form(s) applicable to your specific situation.