[A CA Guy]

What I meant to say is that the national picture on real estate looks more these days like Texas in how they handle walking away. Califonria used to be easy to walk away and I think new laws have changed all that TF.

[Texasforever]

Well the new bankruptcy law probably makes it easier for the lending companies to keep the owner from full chapter 7 relief but the IRS rules have always stuck the owner with income taxes on the balance after foreclosure sale. I know several people that walked away after the housing bust in the early eighties and believe me, the IRS went after them with a vengeance. There were NO loopholes and there was no way they could file bankruptcy on the IRS.