Foreclosure in San Diego>Question Details

Viviane Mason, Home Seller in San Diego, CA

Can they go after my primary residence if I foreclose on my investment property? My investment property in

Asked by Viviane Mason, San Diego, CA Wed Apr 15, 2009

Las Vegas is worth a less than my loan and based on that market, It will take another 10 years to come back up. I am tired of paying the losses every year and I don;'t qualify for a short sale. What should i do?

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4
That all depends on the state foreclosure laws. In Florida, they can't come after your primairy residence, but in some states they can. consult a lawyer and a Las Vegas Foreclosure and Short Sale Home Specialist
0 votes Thank Flag Link Thu Apr 16, 2009
Vicouto:

I am sorry to hear of your situation. I'M NOT A LAWYER, nor am I aware of ALL the details of your circumstances; however, my understanding is as follows if a foreclosure takes place on your investment property:

There are a number of ways a lender may or may not be able to go after personal assets via a deficiency judgment after a foreclosure, but it makes a difference on how the property is foreclosed.

For a Non-owner occupied rental where:

1) A lender made a purchase money (recourse) loan, then a deficiency judgment can be attempted if a judicial foreclosure is used. This is not allowed under a trustee sale foreclosure.

2) A Seller financed a purchase money loan, no deficiency judgment can be attempted (non-recourse loan).

3) You as the owner of the property, refinanced the property (recourse loan), then a deficiency judgment can be attempted if a judicial foreclosure is used. This is not allowed under a trustee sale foreclosure.

In any case, your situation should be reviewed by a RE Lawyer to make sure.

Best, Steve
0 votes Thank Flag Link Wed Apr 15, 2009
Vicoto,

Both properties are different from each other, so answer is "No", they will not come after your primary residence. You can short sale your investment property, find a realtor who is experienced in short sale to sell your house. Always consult with your CPA or tax attorney for any tax ramificiation.
0 votes Thank Flag Link Wed Apr 15, 2009
Dear Vicouto, I would consult your tax attorney or CPA regarding this question. It cannot be answered in a public forum such as this.
0 votes Thank Flag Link Wed Apr 15, 2009
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