[CA Conservative]

Don’t you face a large tax liability if you walk away from a mortgage?

Not from the Feds. On the state level, it depends. Most states have passed laws to conform to the federal law. If you lose your home to foreclosure or short sale, and it is you primary home, you probably will not face tax consequences on the forgiven debt.

[savedbygrace]

See #96 and please comment. Maybe I’m misinterpreting.