The Freddie Mac 1099-C Filing Report is Available
On January 16, Freddie Mac released an announcement titled The Freddie Mac 1099-C Filing Report Is Available.
The Freddie Mac 1099-C Filing Report Is Available
Your Freddie Mac 1099-C filing report is now available in Default Reporting ManagerSM. Please use this report to determine if you need to file Form 1099-C with the Internal Revenue Service (IRS) and provide the form to the borrower, when necessary. Review the requirements in Single-Family Seller/Servicer Guide (Guide) Section 55.3.1, IRS Form 1099-C, Cancellation of Debt, for more detailed information.
As a reminder, the Freddie Mac 1099-C filing report only includes foreclosure sales where:
- You preserved the deficiency through foreclosure, and
- Freddie Mac or its vendors decided post-foreclosure not to pursue the deficiency in 2014.
Follow Guide Section 55.3.1 for all other liquidation scenarios. For complete details about this report, please see page 4 of Guide Bulletin 2014-16 [pdf].
What to Do Next
- Access the Servicer 1099-C filing report from Freddie Mac in Default Reporting Manager.
- Determine the deficiency amount and the amounts to include on IRS Form 1099-C. Review the report and determine if you need to file Form 1099-C with the IRS and provide it to the borrower.
- Provide a paper copy of IRS Form 1099-C to the borrower by February 2, 2015. You are also required to file IRS Form 1099-C with any state that has this requirement.
- File IRS Form 1099-C on Freddie Mac’s behalf electronically no later than March 31, 2015. Visit www.irs.gov for guidelines on filing electronic reports and corrections.
- Notify Freddie Mac that you filed Form 1099-C with the IRS. Submit Guide Form 1065 following Guide Directory 3.
If you have questions, contact your Account Manager or Customer Support (800-FREDDIE).
For More Information
Visit the Default Reporting Manager Web page.
Review Single-Family Seller/Servicer Guide Bulletin 2014-16 [pdf].
Sign up for the latest emails on Single-Family news, updates, and alerts on our Subscription Center.
Contact your Freddie Mac representative.
Please click here to view the announcement online.
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.