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Junior Member
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?


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.

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