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I agree that you have no defense and it would not be worth spending money to defend something that you will not prevail in. However, do note that if this house is not your residence, though you may not owe money after the house is foreclosed to the banks, the bank will issue you a 1099 for the amount of money that they lost. And this 1099 is also sent to the IRS. Accordingly, you may owe taxes for the money that the bank lost. Therefore, you should consult with a tax adviser/CPA to learn what may be your tax liability.