Form 1099-S is used for a traditional sale, short sale or deed in lieu of foreclosure; form 1099-A is used for a foreclosure. A lender may forgive or cancel debt in any case – where it’s a short sale, deed in lieu of foreclosure, or foreclosure – which will result in the issuance of a 1099-C.
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Deutsche Bank filed a foreclosure action in August 2009. The bank attached the note to the complaint and waived any deficiency judgment against Wuensch. In foreclosure proceedings, Deutsche Bank’s attorney presented the purported original note and moved to admit a copy into evidence.
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