Loophole around Deficiency Judgement

[Sabina Hasan]

Situation: If you believe that your mortgage company will come after you for deficiency judgement on a foreclosed home, you currently own and live in a multi family... The foreclosed home was a second home you purchased. Both properties are in the state of MA.  If you decide to move to another state such as CT since they are anti deficiency, does this waive any judgments against you? 

Can you simply put your current property in a trust and move to a anti deficiency state to avoid judgement? and protect your current assets? 

[Jay Hinrichs]

the loop hole is you file a form with the IRS that says at the time you lost the house you were insolvent.  that will preclude the 1099c and usually back the lender down