Hitting a rough patch financially can happen to anyone. And sometimes that might mean you can no longer pay your mortgage and you default on your loan.
If that happens, you will likely face foreclosure. As your home is used for collateral on the loan, the bank will repossess your house and sell it to make up the balance of the mortgage. (You may also face foreclosure if you don’t keep up with property insurance or fail to pay your property taxes.)
When you lose your home in a foreclosure, the trauma you and your family experience will hopefully be mitigated by relief from the pressure of mounting mortgage bills. Yet that doesn’t always mean you are free and clear of financial obligations associated with the property.
So before you wipe the slate clean of the debt associated with your mortgaged home, here’s a rundown of the tax implications of a foreclosure.
To continue reading the rest of the article, please click on the source link below:
https://www.sfgate.com/realestate/article/tax-implications-following-foreclosure-what-you-18123400.php