I have two rental properties I intend to let go to foreclosure. Question: I'm told if the props go as a "short sale" then the mortgage company(s) is going to tax me on their loss between the mortgage balance and the money they actually get. If it just goes into standard foreclosure then I am safe (at least from them taxing me).
What about judgements? Can the Mtge Co.'s issue a judgement against me? How do I ensure they don't? Would it behoove me to contact them up front to let them know of my plans? Owned the props for over 5 years. One has a 1st Mtge only. The other has a 1st and a 2nd. Props are located in Denver, Colorado.
Props are old and are taking a lot of repair. Rents do not support repairs. I am upside down on them big time. They are 100% rented.
Thanks
