A 2nd home is still treated as a primary residence, when you originally purchased it, the lender didn't treat it as a Non-Owner Occupied home (investment property). No you won't have to pay taxes on the deficiency thanks to the Mortgage Debt Forgiveness Act of 2007. I don't believe the can still go after the deficiency on your California property that you are a co-signer on., however I have to say, please consult with an attorney or CPA just to make sure/

I am assisting sellers with Short Sales in both states CA & NV. My clients are mainly CA investors who bought property in Vegas & now they're upside down. The investors are the ones who are facing tax liability on the deficiency amounts. So far none of my clients have faced any issues with their other California properties.

If have any more questions or would like to discuss doing a Short Sale on the Vegas property, just send me an email & I'd be happy to help. How is the California property doing, is it in an area where values of gone down tremendously?

emilyknell@yahoo.com

Buddygal, My best advice to you is to not allow the property to go to foreclosure. Try to short sell first. Depending on your lender and their willingness to successfully approve the short sale, your lender may be willing to waive deficiency judgement. And, in my opinion, it's always worth a shot. You certainly have nothing to lose by trying to short sale the property and avoid the foreclosure.

As far as tax liability, whether you foreclosure or short sell, you may be facing a tax on the deficiency amount due to the fact that the Vegas property is an investment and not a primary residence.
Consult with a bankruptcy or real estate attorney in Las Vegas. It's well worth the consulation fee to know your options. If you need an attorney referral or If you want more information on starting the short sale process, please do not hesitate to give me call.
Best of luck,
Nichole LaVigne
Prudential Americana Group Realtors
702-544-4022
nichole.lavigne@gmail.com

You need to know if your lender will foreclosure by judicial or non-judicial foreclosure. You will also want to know if you have a recourse loan or a non-recouse loan. Typically in nevada the lender will foreclose by deed of trust (non-judicial) foreclosure but not always. If your loan is a non-recouse loan and you only have one loan on the property then you have one situation. If your loan is a recourse loan then your lender can certainly go after other assets if they obtain a deficiency judgement against you and place liens on other assets. If you are on another loan in California but not title, then probably the lender will not be able to pursue you. However, if you recently did a quit deed to get off the title then this could be an issue for you. For a lot of free good information please visit

http://www.foreclosureoptionsnetwork.com

Only a Real Estate Attorney is qualified to answer that question.

Yes, they will hit you for probably $200 for a one-hour meeting,
but it is money well-spent.

Have all documentation with you (on both houses) when you arrive for the meeting with the Lawyer.
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Best wishes to you,
Fred
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