As you can see across the board, all of us Real Estate Professionals highly suggest talking to an Attorney, tax and accounting professional (that you feel comfortable with) to analyze your specific and unique situation.
Their are many options available to you prior to going into foreclosure (sale of the property at the courthouse steps) that could help relieve some of the issues a full foreclosure would bring. I would love to help you discover these options and see how we can come to a solution. I specialize in foreclosure and shortsales and understand these stressful circumstances. Let me know. I am a resource!
Joan Wilson (Realtor, SRES, Ecobroker)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
License # 01341483
It is my Goal to Increase the Success and Profitability of Those I Serve
In general in California with a purchase money loan on real estate, if the lender forecloses on a principle home with a trust deed sale there is no recourse for the difference. A purchase money loan is where the loan was used for the purchase. Owner occupied means that it is the home that you are living in.
2nd and Jr. Lenders may have recourse in California and it has become more common in short sale approvals for those lenders to reserve the right to go after the Seller.
Once again I cannot stress how important it is to seek professional advice for your specific situation.
You may also want to familiarize yourself with the
United States Internal Revenue Service page titled:
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
Best wishes to you,