Hi CPAs,
I'm hoping this is the right community to ask my question. My situation is a bit similar to mswing but not completely.
I'm based in Michigan and facing a bad financial and job situation where my only option is to walk away. I completely understand the credit hit that will come but don't have a choice. I do however have a job opportunity out of the country which seems to be a very good option at this point.

I'm thinking of walking away and letting the bank know that they can take over. I will however need to file my tax return for the 8-9 months of 2009 come January 2010. Some people have told me that IRS or the bank has the right to seize my refund, is that true ? It seems to be a trivial recovery as my refund normally used to be about $6000-$7000 for the year, but for 2009 (only 8-9 months) it will probably be around $4000-$5000. Since the foreclosure will cause a much bigger loss, will the IRS or the bank still seize my refund? (I'm relying currently on the refund to fund my move if all goes through as I dont have any other assets). Also, besides the severe negative affect of foreclosure, do the banks also come after the person for the difference of the loan amount vs. whatever the foreclosed sale price is?

I hope I have properly explained my situation and questions.... I would really really appreciate any answers, advice and suggestions.

Thanks

uzee