Legal Question in Real Estate Law in California

Re: Effect to my first house

The answer to your question as to what will happen to your old house is "probably nothing at all" if all of the following are true:

(1) All of the financing on the second house is "purchase money," i.e you didn't refinance or take out a second after you bought it;

(2) If the purchase money included both a first and a second deed of trust, the seller carried the second (and not a third party, such as a bank); and

(3) Your loan application was completely honest and did not overstate your income or net worth.

If all three of these are true, and you have taken good care of the new house, your old house is probably safe in a foreclosure. If one or more of the above is not true for your situation, you might be in some danger of a judicial foreclosure and deficiency judgment, especially since you have $200K equity that the lender would like to reach if it can.

Re: Effect to my first house

Call me and we can discuss the specifics in about five minutes and I can let you know. Free telephone consult.