what will i loose it I let my rental go to forecloser

Losing a rental to foreclosure, is exact same thing as losing your primary residence or Homestead to foreclosure. Homestead exemptions do not work against mortgages. The most likely result will be that one the house is foreclosed and sold at auction, it will be sold for significantly more than is owed on the remainder of the mortgage including the deficiency payments. Most banks no longer even attempt to collect this money from the home owner, they simply reported as a loss on their taxes. This is a very bad situation for the homeowner, as this gets reported to the IRS on a 1099 form as you received the amount of money that you were deficient as income. Basically if you have a mortgage for $200,000 and your home is sold at auction for $100,000, you have a deficiency of $100,000. Now the bank will do two things either come after you, this is very unlikely at this point in time, most likely the bank will simply reported as a loss to the IRS. The problem with this is you will be assessed taxes as if you made an extra $100,000 in that calendar year that the bank reported the deficiency. Once the IRS has assessed this on your taxes, bankruptcy will not be as helpful. To prevent this from happening you should file either a chapter 7 bankruptcy or a chapter 13 bankruptcy prior to the foreclosure sale. You're not attempting to keep your home, you just want to remove your obligation on the debt prior to the foreclosure sale so you do not get any tax ramifications. There are ways to write off tax debt, but they are extremely difficult and there are waiting period involved. The best recourse when you know you are going to be foreclosed upon and cannot get out of foreclosure, would be to file bankruptcy and remove the obligation of the debt prior to being foreclosed. 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