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Thanks Phil. I probably stated the bankruptcy issue incorrectly. Bankruptcy in this case is because her debts - medical and the house are more than she can ever pay off. Foreclosure is because she cannot make the monthly mortgage payment and could not get it lowered. Certainly the house will go for less than she owes, so she was told that she would be getting a 1099 for the amount over the sales price that she still owed the bank. But, OTOH, she thinks that she will not have to pay taxes on that amount if she goes into bankruptcy - which might also delay the entire foreclosure it seems. Hopefully she will be seeing her bankruptcy attorney asap.

Thanks for your link, I will have a looksee.

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