I fell on hard times in 2008 with a death in the family and a brother on life support. I called New Century Mortgage - Carrington Mortgage Service for a deferment for 2 months and was assured that since i was never late it would be approved. That was in may.in june i recieved a letter with a 1099-c cancelation of debt form for my taxes. When i called them they said that since i could not pay the mortgage at the time they wrote the entire loan off (it was a second mortgage) i included the 1099-c with my 2008 taxes and paid the penalty. Well i just got a call on Oct 23rd 2009 saying that i needed to work out they never wrote off the loan and offered to settle for 50% of the original loan balance it would be done with. But according to the IRS once the company gives you the 1099-c you no longer owe that debt. If anyone knows what is true please email me "no1spec517 at aol.com
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