In California, are my other assets (SF 2nd property, 401K, non-401K brokerage accounts) safe if I allow my current house to go into foreclosure?

Asked by Whereismybailout, 94547 Sat Jan 22, 2011

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Donna DeSino, Agent, Walnut Creek, CA
Tue Jan 25, 2011
I really hate to hear that you would let this property foreclose- doing a Short Sale saves you from a foreclosure
and they are painless! Before you do anything you need to get the advice of a Tax Lawyer and/or a Real Estate

Good Luck!
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Theresa Ubun…, Agent, El Cerrito, CA
Mon Jan 24, 2011
I would definitely seek advice from your cpa or an attorney who specializes in bankruptcy.
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Eli Givoni-S…, , Boca Raton, FL
Sun Jan 23, 2011
Why would you let this property go to foreclosure and ruin your credit? You can do a short sale and we can negotiate with the bank, so you know all your loose ends will be tied up. We are a professional short sale service. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
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Bob Georgiou, Agent, Danville, CA
Sun Jan 23, 2011

It's adviseable to seek the consultation of a tax professional and lawyer to get infomred NOW as opposed to waiting for the bank or their collections mercernaries to come calling. While whatever legal protections are in place to may or may not affect these assets, there are practives that the banks or colllections people are attemting to get around them. HAve a lawyer look at the types of assets and dollars involved to get the best advice.
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Linda Urbick, Agent, Blackhawk, SD
Sun Jan 23, 2011
Your other properties and assets should not be touched or affected. The impact will be to your credit and possible tax implications. As suggested from a previous answer, contact an attorney or your accountant to determine the tax consequences.
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Steven Ornel…, Agent, Fremont, CA
Sun Jan 23, 2011
Hi Whereismybailout,

I recently covered the topic of "Strategic Default" in this post that will provide you with some of the realities you will face if you just decide to walk away:…

One portion of this post bears repeating for all who are facing a "distressed property" decision:

"If you are truly considering a “distressed exit” from your home forget about contacting a Real Estate Agent at this time – speak directly with a CPA/RE Tax Lawyer, they are the consummate experts regarding these matters and the only place you should be getting your “exit strategy” that a Real Estate Agent may be able to help you execute."

Fail to contact a CPA/RE Lawyer and chances are you will not come out this process unscathed.

CA is a non-recourse state; however, refinancing removes this protection. Again, speak directly with a CPA and Tax Lawyer about your situation!

Best, Steve
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Suzanne MacD…, Agent, Morristown, NJ
Sun Jan 23, 2011
You need to check with an attorney who is familiar with foreclosure laws in California. Are you a recourse state? If so, they bank may be able to get a deficiency judgment against you and levy your other assets. You really need to talk to a lawyer as soon as possible to find out the answer.
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