Technically, a refi with cash out is a recourse loan in CA and the debt, if forgiven, would be taxable by IRS. However, I have yet to see anyone get a bill. Even if they did, they would say they spent all the money on vacations, bars, Vegas.
Last year, some would have said Swiss account, but now I bet they say gold coins paid with non-sequential bills.
BTW, the man is watching so don’t try this unless you are Treasury Secy.
