Market Conditions in 95134>Question Details

Michael Khait, Both Buyer and Seller in San Jose, CA

I'm looking for an real estate/financial/legal advisor who can help me with my situation.

Asked by Michael Khait, San Jose, CA Wed Mar 11, 2009

I need a professional advise and detailed plan for execution. I own to properties in 95123 and 85022.
95134 - primary residence. Above the water. Requires refinance from 5 year IO. Must keep.
85022 - rental. $150k under the water. I don't really care about it as I'm loosing money and won't be able to turn profit in next 10-15 years. Need to do cut loss.

I want to get read of 85022 with minimal credit damage, if there is a damage, I need to refi 95134 before.

If I walk away from 85022, will bank go after 95134 and my other assets?
If I do a short sale, will the difference be considered "a profit" form which I will pay taxes?

I'm willing for work with someone, who will carefully weight all scenarios and help me execute on those. I would like to work for a flat fee, depending on how much I will loose (credit rating, cash, etc.)

Help the community by answering this question:


Dear Michael,
I caught your post while browsing this website and thought I should provide you some answers to help.
I'm the RE/mortgage broker and our company provides the loan modification service (LM) to help homeowners save homes from foreclosures due to hardship, or mortgage shock... Our company is DRE approved for LM and work with bankruptcy, foreclosure attorney team for a complete solution to clients. Check out

For your questions, if 85022 is a recourse loan, yes, bank can go after your personal assets. No, if it's non-recourse (California law). If your bought home with a purchase money loan (not refinance, nor cash-out) usually it's a non-recourse loan. Check your note to confirm. In both short sale and foreclosure, a "profit" can report to you by bank for their loss (or your gain) if it's a recourse loan. Need to consult w/ CPA or tax advisor to work w/ IRS in that case. Short sale always is a better choice before foreclosure.

You might consider refinance 95134 to a low 30-year fix rate before get rid 85022 (damage credit).
If you need help refinance, LM, short sale, contact us or (408)956-9230

1 vote Thank Flag Link Wed Mar 11, 2009
In my experience, a good advisor would be wise right now. I can recommend Elena, an attorney. She is very good at working with clients on re-finance, foreclosure, and loan mitigation. She would use your time wisely! She can also find out for you if your other homes are in recourse or non-recourse states.

Good luck -- Erica M Nelson http://( Here's her contact info:

Elena Rivkin Franz | Pratt & Associates
1901 S. Bascom Avenue, Suite #350
Campbell, California 95008
(408) 369-0800 Main | (408) 369-0752 Fax
0 votes Thank Flag Link Wed Mar 11, 2009
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