Legal Question in Real Estate Law in California

If I stop paying my mortgage and let my house go into forclosure but I can afford the payments, what is my liability? I filed bankruptcy in 2008, but my house is worth less than half of the amount I am paying in 1st and 2nd mortgages.


Asked on 1/27/10, 3:00 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Foreclosure would result in any 'recourse' loan like refi and 2nds getting a deficiency judgment against you for what they don't recover from the foreclosure sale. That judgment[s] would be used to levy on any assets and income you have. If you can't file BK again, you'd have no good options.

The original 'purchase money' 1st loan would generally not be able to get a deficiency judgment after foreclosure, absent loan fraud by you.

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Answered on 2/01/10, 4:29 pm


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