Legal Question in Real Estate Law in California

Re: Foreclosure

In additions to Mr. Shers' answer, you did not indicate whether this was the original mortgage or a refinanced mortgage on the house. If it is the original mortgage, what the law calls a "purchase money mortgage", then the lender is limited to the original security (i.e. the house or however the security description is specified). If it is a refinanced mortgage, then the lender is not limited to the original security, and they can get a deficiency judgment against the borrowers which they could use against the other properties, even if they aren't part of the house's original security description.

You probably do need to see an attorney right away.

Re: Foreclosure

That will depend upon a number of factors. If you are facing foreclosure on one of the properties and want a better answer, call me. It won't take but a few minutes.

Re: Foreclosure

If you did not put the 5 acres and other house up as additional security for the loan they clearly can not go against those properties. The lender is limited to going against the security interest given to them. If they foreclose in the manner almost always used in California, a public sale, the all they can do is take back the house you allowed a lien to be placed on.

For future safety, you might want to check if you need to split the acreage up so that you can get around any future restrictions that might be placed on larger parcels of land [so instead of one house per quarter acre, only one per 5 acres. If the adjoining piece of land are held in different names [yours, your wife's, both, etc.] then you might be able to stop merger, but it might cause other problems so you would need to speak to a real estate attorney first.