(Source: RealtyTrac)
- Foreclosed homeowners can be taxed on unpaid debt. You might think that foreclosure and bankruptcy are just about the worst financial events in the world, but for those who lose their homes things can get even tougher. The problem? Tax rules from Uncle Sam say you can't deduct losses from the sale of a personal residence. Even worse, unpaid mortgage balances may be regarded as income ? taxable income.
