I owe 115,000, house is valued at approx. 45,000. I can't keep up with it. I am 71 and only have SS and retirement . Was told the IRS would attach my state retirement to pay the taxes owed on the difference left ..for instance, if the mortgage co. sells my house for 40,000, I would have to pay income taxes on the remaining 75,000. My income at this time is non taxable (disability) I live in Florida now but was going to move in with my sister in another state.