How does a home equity loan on an second home that was foreclosed on affect my taxes?
I’m from northern Virginia and my wife and I let our rental property go due to lack of income. It was foreclosed on 7/14/10. We stopped paying on it in January, but July was the acquisition date. We had a home equity line of credit through another lender, a personal bank and not our original mortgage holder. We have still been paying on that credit line since the foreclosure. They sent me a 1099 form that basically states I am not paying on the line anymore, as if it were defaulted because the loan is now unsecured. I have received no documentation on any of the interest I paid for the entire year last year, and it is impacting my annual taxes greatly. Any advice?