Im in a similar situation, as I had posted before, my home foreclosed in 2008. The house finally sold in April of 2009, is this basically a waiting game to see if they pursue? this has really baffled me because American Home Servicing says that I have a zero balance with them, but my court papers say Argent Mtg and Duetche Bank. The second mortgage has sent a letter informing me that I owe 40k and Im willing to settle for the right amount. If Im sent a 1099 does that mean the bank forgave the debt? Once the debt is forgiven can the acct be sold and another company attempt to collect?