I had a home which was financed through LLS (Litton Loan Servicing). I fell behind on the payments and entered into forclosure. Fortunatly we were able to sell the home before I lost it to the bank. My realitor and I contacted LLS to do a short sale and got one approved. I have the letter from LLS that says how much we are allowed to short sale and it was in the amount of about $3000. We sold our place and I thought all was good until tax time rolled around.
When I had to file my taxes I had gotten a form in the mail from LLS and was not sure what it was. I went to H&R Block to get my taxes prepared and found out the 1099C form was a to show the loss LLS took from my short sale and I would have to claim that amount as income on my taxes. The problem is the amount LLS had in the form was $18,000 even though my short sale was about $3,000. I put my taxes on hold and contacted my realitor and she contacted the closing agent we calculated all the fees and even estimated high and could still only figure the loss for LLS to be about $5,000. Since then my realitor, closing agent, and I have all tried contacting LLS about it and have gotten nowhere. They told me that I would have to file with the grievance department so asked to be transfered and they told me they cant because there is no phone in that department. My realitor talked to some other individuals in the company and got similar answers. I had to file for an extension on my taxes and I am going to see if the IRS can help in anyway.
Scott
0 comments