The key will be if the loan is a recourse loan or non recourse loan in california. If you refinanced the property you may have some issues. If the bank has a right to a defeciency the right will be exercised after a judement is created and they start the collection process on the short fall between home value and mortgage. How it would be paid, if in fact you owe it would be determined by the bank, courts and you. It could be garnishment of wages or if you sell home attachment of proceeds. It is best to talk to a attorney if in fact you have a recourse loan.
First Weber Group
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