Consumption and Real Estate
What happens to you if you foreclose on a property in Nevada, and have a HELOC on the property?
What happens if you foreclose on a property and have a HELOC on the property? Property is in Nevada. Will I have to pay the HELOC balance if I foreclose?
no – but it will be considered a “debt forgiven’ to the IRS and you will be taxed on it as if it were regular income