I really hate to hear that you would let this property foreclose- doing a Short Sale saves you from a foreclosure
and they are painless! Before you do anything you need to get the advice of a Tax Lawyer and/or a Real Estate
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
It's adviseable to seek the consultation of a tax professional and lawyer to get infomred NOW as opposed to waiting for the bank or their collections mercernaries to come calling. While whatever legal protections are in place to may or may not affect these assets, there are practives that the banks or colllections people are attemting to get around them. HAve a lawyer look at the types of assets and dollars involved to get the best advice.
I recently covered the topic of "Strategic Default" in this post that will provide you with some of the realities you will face if you just decide to walk away:
One portion of this post bears repeating for all who are facing a "distressed property" decision:
"If you are truly considering a â€œdistressed exitâ€ from your home forget about contacting a Real Estate Agent at this time â€“ speak directly with a CPA/RE Tax Lawyer, they are the consummate experts regarding these matters and the only place you should be getting your â€œexit strategyâ€ that a Real Estate Agent may be able to help you execute."
Fail to contact a CPA/RE Lawyer and chances are you will not come out this process unscathed.
CA is a non-recourse state; however, refinancing removes this protection. Again, speak directly with a CPA and Tax Lawyer about your situation!