Can anyone school me on how foreclosing works. My question is, when you foreclosed a house do you still have to pay that property or owe the bank anything…My bro is thinking of walking out his house he bought in san diego…Any good input would be great……
First purchase, primary residence or non recourse loans are usually ones where they can take the house but cant come after you unless they suspect fraud. The are also called soft money loans. The refi’s heloc’s and second property loans (investment property) is recourse. They can come after you.
BTW even a non recourse loan, you get a 1099C for the forgiven part of the loan and it counts as Income. You pay taxes on it. But hey its not as bad as being sued for a POS you cant sell …
Cool.
Cow_tipping.
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