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In other words, you may be liable for tax on the value of your mortgage that got reduced. When you stop paying your mortgage, you stop paying home mortgage interest. As such, you lose this deduction..
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Primary Capital Mortgage (PCM) is a residential mortgage lender and servicer offering home loans in 17 states through Retail, Wholesale and Correspondent channels. Founded in 1994, PCM has funded more than $7 Billion in residential mortgages.