Foreclosure

[FouadF]

What is the name of your state? Illinois

I currently have a 1 mortgage on my condo and about 25% down. I am thinking about getting a 2nd mortgage in order to draw out the remaning equity. Hypothetically, if I do borrow 100% of my home's value and if the value of the property drops significantly down the road, can I walk away from my debt obligation by handing over the property to the lender through foreclosure?

 

[alent1234]

if the lender sells the property for less than the remaining balance and various fees for foreclosure they will send you a bill. if you don't pay it they will write it off their taxes and the IRS will send you a 1099 for the balance they wrote off and you will need to add it to your income for that year and pay taxes on it.