let me make sure i understand this correctly… so whether they do a short sale or just walk away and let the bank take the house back, they are hit with a 1099? for some reason i thought it was just for a short sale that they got the 1099… should definitely be for both though! so someone who walks from a, say $100k loss, will probably be making payments to uncle sam for the rest of their lives on that approx. $38k tax bill?
