Do you still owe if your house falls into forclosure and the bank takes it back?

Question

Do you still owe if your house falls into forclosure and the bank takes it back?

Answer 1

no.

Answer 2

The bank sometimes can come after you for a deficiency judgement (and sometimes they can't).  Still, if you have little or no assets they probably won't bother - you can't get blood from a stone.

Answer 3

If it sells for less than you owe, then yes you are liable.  If the bank forgives the debt, it is considered income and you must pay tax on it (the bank will report it to the IRS).  The bank can also choose to pursue you for the balance.

Answer 4

What you owe minus the selling price is what the1099 will say for your income tax.