Question

under what circumstances would a lender file form 1099a with the irs and send the taxpayer copy

Answer 1

Under what circumstances would a lender file form 1099a with the irs and send the taxpayer copy:

If someone borrow money from a lender to purchase property, the lender may require the loan to be secured by the purchased property. If borrower transfer the ownership of the secured property to the lender such as in a foreclosure or abandon the property, the law may require borrower to treat the transfer or the abandonment as a sale of the property. If the lender acquires the secured property or has reason to know that the borrower abandoned or stopped using the secured property, the lender should send you a Form 1099-A .