In 2013 Jason purchased his home for $300,000 he made a down payment of $50,000 and secured a recourse loan for the balance in 2017 the bank foreclosed on the home because he start making payments at the time of the foreclosure the mortgage balance was 230,000 the fair market value was 320,000 and the adjusted basis was 340,000 due to a room addition

in 2013 Jason purchased his home for $300,000 he made a down payment of $50,000 and secured a recourse loan for the balance in 2017 the bank foreclosed on the home because hes not making payments at the time of the foreclosure the mortgage balance was 230,000 the fair market value was 320,000 and the adjusted basis was 340,000 due to a room addition