If the loan results in being delinquent, any taxable portion of the exceptional harmony and accrued interest will likely be treated as taxable revenue through the IRS. If you’re less than age 59½, you will have to pay an additional early withdrawal penalty tax. See “Early Withdrawal Penalty Tax” from https://loan90002.topbloghub.com/33973283/the-2-minute-rule-for-loan-approval