Legal Question in Credit and Debt Law in California

I live in So. CA and have not paid my mortgage pymts. in 8 months. I don't think I qualify for a load mod. because I have around $25,000. in credit card debt. The bank has, thus far, kept sending the statements but I have not received anything that states they have started foreclosure procedures. My concern is that they will lock me out and take my personal belongings vs a 3-day notice. Can they do that? Can they take any money I have in IRA accounts or savings/checking account.

Also, I have been on disabity for 10 months but do plan to return to work soon. Does my hardship count for anything? Should I file bankruptcy or debt consolidation?

Thank you,

karen


Asked on 1/14/10, 10:13 pm

1 Answer from Attorneys

Regardless of credit card debt, you might still qualify for a loan mod. There are many programs right now and with your hardship disability and depending on the bank that has your mortgage, you might qualify. The bank must send you a Notice of Default and then instigate foreclosure procedures on your primary residence home. Most home loans in California for 1st mortgages on primary residences are non-recourse which means that the banks can take your home but not your checking/savings. IRA and other retirement accounts are typically the last things that creditors can tap and only certian creditors can get at those. Your hardship does count for something. Bankruptcy might not solve what you are facing because of the type of debt. You can contact me if you would like to discuss further.

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Answered on 1/20/10, 9:41 am


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