I’m planning to foreclose my property. Am I entitled to the Mortgage Debt Forgiveness Act?
I buy my house for $ 595K and I can’t afford to pay my mortgage anymore. The drive-by appraise value of the property now is about $ 420K. Say that the lender will sell the property for $ 420K, do I have to pay tax for the difference or I’m entitled to the Mortgage Debt Forgiveness Act? Also, can the lender go after me for the difference of the loan and the selling price. By the way the property is here in California