short sale question

I finally got bank's approval letter for my short sale rental house.In the letter, it states:

"Upon receipt of sale proceeds, CitiMortgage will release its mortgage on the property, will not pursue the customer for the remainder of the debt and will report your mortgage as 'paid in full for less than full balance' to all credit reporting agencies.CitiMortgage is required to report the amount of the debt forgiven to the IRS on 1099C form, a copy of which will be mailed to you".

Is this the bank's standard verbiage? Will IRS tax me if the bank sends them 1099C form? I am in California. Thanks for any advises.

所有跟帖： 

• 這是給賣方的。。。。 -MrsKwok- ♀ (0 bytes) () 05/19/2012 postreply 09:05:19

• 是的, and I am seller. -zhc0987- ♀ (0 bytes) () 05/19/2012 postreply 09:10:09

• 好象在哪看到tax forgiveness 法案快要到期了 -古石- ♂ (140 bytes) () 05/19/2012 postreply 10:10:02

• 沒人知道嗎？AGENT 說不用擔心，但我還是不放心，想來問問大家的意見。謝了。 -zhc0987- ♀ (0 bytes) () 05/19/2012 postreply 10:15:46

• 2012年底到期, Mortgage Forgiveness Debt Relief Act -hhhhhh- ♂ (0 bytes) () 05/19/2012 postreply 13:03:27

• worry too much. -jjj7- ♂ (134 bytes) () 05/19/2012 postreply 13:13:35

• The house I am selling is not the principal residence, it's the -zhc0987- ♀ (57 bytes) () 05/19/2012 postreply 17:50:13