I heard that even if you walk away from your property and mortgage, you still end up with tax.
For example,
If you borrowed 100% financing with 500k.
You walk away from 500k mortgage, then lender sell the property for 350k.
The loss of 150k will be considered as income for the year’s tax return for you.
You will be responsible for income tax of 150k which will be around 40-50k?
Is that true? that’s my friend told me.
What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
