3 ms·
It depends on which state you are in, but if you have a non-recourse loan and bought the house with a small deposit which you can lose, it might be a good strat
by rb808 6y ago
It depends on which state you are in, but if you have a non-recourse loan and bought the house with a small deposit which you can lose, it might be a good strategy just to stop paying the mortgage until you get repossessed. In many states it takes a long time even when things are normal. In 2008 many people got to live in their house for years without paying. You'll screw up your credit and probably lose your equity but might be worth it. Do some research.
- woofyman 6y agoIf the bank sells the house for less than the mortgage, the IRS will consider the difference income.
- gamblor956 6y agoKnown as "cancellation of indebtedness income." https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation https://www.irs.gov/newsroom/home-foreclosure-and-debt-cance... Foreclosure of non-recourse loans does not trigger cancellation of indebtedness income. Instead, it could trigger capital gains.