Foreclosure in 92101>Question Details

Alan, Home Owner in 92101

I own a rental property in San Diego. I live in NV. I have the assets to pay off the mortgage. Can the mortgage co. come after me if I

Asked by Alan, 92101 Mon Dec 13, 2010

"walk"?

Help the community by answering this question:

Answers

12
Before considering such a scenario, do consult with an attorney who specializes in real estate--he/she can best advise as it relates to your specific situation.....
2 votes Thank Flag Link Mon Dec 13, 2010
Hi Alan,

If we were you, I would not consider any other answer than what Anna stated below. Only a real estate attorney can advise you on your rights. We would make sure they understand both CA and NV law.

Best of luck,

Mark & Kari Shea
Shea Real Estate
858-761-5233
1 vote Thank Flag Link Mon Dec 13, 2010
Hi Alan,

Couple questions for you.

Are you current or late.

Have you tried to modify.

I would talk to an attorney. You live in a different state and have assets.

Typically a purchase money loan only would not get a deficiency judgment. The lender gets One Action to get their money and they are choosing foreclosure.

If you have a second mortgage I may be a little concerned.

Joanna Jensen
Legal Assistant
Volo law Group
877-757-8739
0 votes Thank Flag Link Sat Jan 15, 2011
If the lender opts for non-judicial foreclosure and makes a full credit bid at the trustee's sale, the full credit bid rule prevents the lender from coming after you.

But if the lender opts for judicial foreclosure, in theory, the lender can seek deficiency judgment. But as a practical matter, it may be hard to establish deficiency. I have a blog that explains why (link below).
0 votes Thank Flag Link Tue Dec 28, 2010
Given the information you have supplied, it would sound like you would be responsible for the deficency and would also received a 1099C for the foregiveance of income and be taxed at your tax rate. It all depends onthe state, investor and the mortgage servicer.

My first step would be to call the bank to get their policy statement. You might get lucky but would not put a lot of hope in gettting away free.

Like others have indicated, check with an attorney that has delt with this before. Make sure they have dealt with this and it would be best if they have dealt with this issue with your bank. Not all attorney's are created equall with this issue. The attorney will have the same issue in touching base with a deceision maker as anyone else (and you will pay attorney fees while he is getting bounced around from department to department).

Keith Manson
First Weber Group
Certified Distressed PRoperty Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Tue Dec 14, 2010
If you purchased the property as a rental property, yes they can and will come after you for the deficiency after a foreclosure. If the property was originally an owner occupied, and the financing was done as such, and not refinanced, then maybe not. Typically, they will consider a short sale if you have financial hardship. In any senerio, you will likely be held responsible for the debt. As everyone else has mentioned, talk to a reputable real estate attorney. Good luck!
0 votes Thank Flag Link Mon Dec 13, 2010
Yes, the bank can try to collect, so be sure to talk with attorneys in both California and Nevada before you do anything.
0 votes Thank Flag Link Mon Dec 13, 2010
You need to speak with an attorney before deciding to walk away. Would you consider using it as a write off until the market improves and possibly renting to recoup some funds.
0 votes Thank Flag Link Mon Dec 13, 2010
If you need legal direction to cover your butt, call Paul Bojic Esq. for a free Q & A.
He's the best California real estate attorney I know.
Youtube link: http://www.youtube.com/watch?v=A2r0e_QSCkA
I've sent a ton of my clients to him for guidance. He's always helpful and straightforward.
I like his direct approach since he's on your side and it's his rep on the line every time.
Good luck.
0 votes Thank Flag Link Mon Dec 13, 2010
Hi Alan,

To execute a short sale you need to demonstrate a financial hardship, which it appears you do not have.

Best of luck,

Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
858-761-5233
0 votes Thank Flag Link Mon Dec 13, 2010
Hi Alan,
Don't let the property foreclose. If you are considering getting out from the property you definitely should consider a short sale. If you want to speak in more detail feel free to contact us. We also have a real estate attorney in our office.
0 votes Thank Flag Link Mon Dec 13, 2010
Yes they can.I would talk with an attorney and talk with the mortgage company. Can you keep it rented for more than the payment?

Good luck,
Joan Wilson
760-757-3468
0 votes Thank Flag Link Mon Dec 13, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer