if i have 2 mortgages with 2 different banks and i have to let 1 of the properties go to foreclosure what happens to me and the other property

One property will not be affected by another property going into foreclosure, as long as the collateral used to secure the debt is each individual property and each property was not also used to secure the other property than the foreclosure of one property does not affect the other. But foreclosure will certainly affect you, which is why you should file for chapter 7 bankruptcy discharge the debt of the property that will be foreclosed upon so you will not have to deal with the tax consequences of foreclosure. When your house is foreclosed and sold at auction below the mortgage value, the bank can go after you for the deficiency payment or most likely, will report this to the IRS and you will have to pay on this as income. Basically if your mortgage is for $200,000 in your home sells for $150,000, you owe a deficiency of $50,000. The bank can either go after you directly for this $50,000 or reported to the IRS as a loss, and you will be taxed as you made an additional $50,000 for that tax year by the IRS. This is why it is important to speak with an experienced bankruptcy attorney to determine your liability. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob, #student, #loans, #education, #IRS, #taxes