The broker who said the banks cannot try to collect because the loan was purchase money is from California, which is a non-recourse state. Other states are recourse states and the lenders DO have a right to attempt collect the money owed to them for up to 6 years. There are certain exceptions. Read your original loan documents and review what you originally promised to do. Check with an attorney. Check with an accountant. As another respondent said, this is not the place to get legal advice. Find someone with a reputation and expertise you can verify. You have a lot at stake, and a bad decision could cost a lot. This may also create a Federal tax obligation for you. Talk with someone who will review ALL the facts of your situation.