Should i let my home go into foreclosure?

You should not allow your house to be sold at foreclosure. You should file for chapter 7 bankruptcy and discharge the debt and remain in the house until the foreclosure sale and depending eviction that will occur afterwards. If you do not discharge the mortgage in a chapter 7 bankruptcy, the bank can come after you for the difference between what you owe on the mortgage and how much the house sold for at foreclosure. If they do not come after you they will give this amount to the IRS will tax you in that calendar year as if you actually made that money that year. Basically if the mortgage is 200,000 in the house is sold for 100,000, the IRS will tax you as if you made $100,000 for that year. 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