T, I think my most intelligent answer, and the most informative one for you, is for me to know a little more about the situation. Variables, like the current tax base of the home, the projected sales / closing price, and any other outstanding unpaid issues that may be involved with the sale of the home (water bill liens, mechanics liens or other unmentioned tax liens) would have to be included with this calculation - especially if it was a stressed foreclosure. Usually working with an agent will get you these kinds of answers. Can you give more specifics, or perhaps a scenario that would help in the answer being more informative to you?