[the man]

...adjustable. If I walk away and let it go into foreclosure can they co If i walk away and let it go into foreclosure and it sells for less than the mortgage can they bank come after other assets like my car, principal residence etc.

[877YouKeep]

It all depends on what state you live to determine whether or not they can legally come after you for a deficiency. Then determine if your lender will hit you with a deficiency or a 1099. Currently most lenders are 1099ing and not seeking a deficiency.

[LossMitigation]

Corey seems to be the expert on the subject. Yes, bankruptcy will remove the 1099 but I overheard proving you are insolvent with your CPA will also do the trick, Corey..

[Gonetodocs]

School'em Corey,
i know you will. The insolvency trick I believe is going to be most people's saving grace and the IRS is really being lenient this year on discharged debt from lenders. (Hearsay so far, I'll post again with some hard data)

IRS form 982 really is an old standby in regards to this issue. There is another post on this as well and Corey opened up and blasted away as I did in our very lengthy wordy fashion. Do a search on the forum for this post and checkit out. Also go to the IRS website to download the form. The instructions to the form I believe spells it out pretty well.

Over the last month the Bush administration has been pretty aggressive in regards to initiating alternative methods of relief for homeowners that have been squeezed out of their homes due to the credit crunch and property value decreases. I have been out of the loop this past week newswise so I have to find the articles of late to help me get back on top of recent events but nothing a good Google search won't cure.

Good Luck and happy hunting.
Gonetodocs