rental property in trouble
I bought a home a couple of years back in California and purchased it at 0 down with a 1st and 2nd mortgage. We've had it now for just over 2 years. After experiencing many problems with past and sometimes, current tenants, we've dipped into a huge portion of our savings to pay the mortgage on time. Up until now we've been successful. Now, we are at our end and have tried exploring every option we can to save our credit. We tried selling the home and that didn't go, we also inquired about a short sale. We have never refinanced this home. My question is. If we can no longer make the payments for this home and it goes into a foreclosure should we expect to pay a huge amount when we file for taxes?