Foreclosure in California>Question Details

Manny, Home Seller in California

My second home is in a short sale process and possible going to TS soon. Because a deficiency in price vs.

Asked by Manny, California Wed Nov 28, 2007

amount owed is created. Can trustee place a lien on my principal home instead of just issueing a 1099c form?

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3
Actually agents should not be answering legal or tax questions. I work for an attorney who specializes in tax.

There is a process that has to be done and it has to be done within a certain time frame as well. So instead of asking an agent who isnt an attorney you need to talk to an attorney who specializes in tax or a cpa who know this typ of transaction.
These issues are why I suggest realtors need to settle 2nd loans as well as make sure the lien is settled. You can just say, "oh Well, the home is under water your out of luck".

Basically if the home short sales and you still owe $200,000k however you get to bring in the fair market value. the lender doesnt get a wind fall. You do need an attorney /paralegal to guide you.

JoAnna Jensen
Realtor/Paralegal
Legal Realty
Volo Law Group
925 699 5041
0 votes Thank Flag Link Sun Aug 30, 2009
Read my blog - there are four parts
http://activerain.com/blogsview/125091/How-The-Foreclosure-Process

The short answer is yes, and on anything else you own.

Consult with an attorney and/or CPA immediately. Time is not your friend
Keithi
0 votes Thank Flag Link Wed Nov 28, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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This depends on if the loan is recourse or non-recourse. A non-recourse loan has the property as security only (subject to fraud or other non-standard defaults). This is fairly standard in California. Definitely read your loan docs and I would highly suggest talking to a real estate attorney and a CPA on these issues. If the house is rented, can you offer the lender to restructure the loan so that you could keep the property? Also, you may buy yourself some time if you list the property for sale as a short sale.
0 votes Thank Flag Link Wed Nov 28, 2007
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
MVP'08
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