No. of Recommendations: 1
Hi Max,

I'd suggest negotiating a shortsale before walking away. If you simply walk away, the default balance will be reported as taxable income. If you short sell, the defaulted balance will not be treated by the IRS as taxable income.

Currently, if you have an orderly negotiated short sale in your past, without an actual default in payments, you can get a new mortgage as soon as 24 months later.

Dave Donhoff
Leverage Planner
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