On Dec 23, 6:11*am, The Daring Dufas
wrote:
On 12/22/2010 11:40 PM, wrote:

On Thu, 23 Dec 2010 03:31:27 +0000 (UTC),
wrote:

In most of the US, you walk away from it and incur no penalty other than
forfeiting what little equity you might have. That's a consequence of law.

People are starting to find out that is not true. Back in the olden
days when a bank could recover all of what it was owed in the
foreclosure sale they let people walk away but now that the loan are
more than the house is worth they are coming after the owner for the
difference. The only out is bankruptcy.

I believe they're sending 1099 forms to the IRS for the amount not
recovered in the foreclosure. You have no money to pay the mortgage
and you give the house back to the bank, the bank sells the house at
a loss and you get a 1099 for the amount of the loss. The IRS comes
after you for the amount on the 1099 as income. Anyway, you get screwed
unless you take precautions with other paperwork maneuvers.

http://illinoislawnews.net/?p=367

TDD

Well the gov. needs tax money to give to the banks. :-)