Legal Question in Bankruptcy in California

Re: financing

If a lender performs a non-judicial foreclosure, then the lender cannot come after you for the deficiency on the home.

Most of the foreclosures in California are non-judicial. But this is no guarantee that your lender will proceed with a non-judicial foreclosure.

Re: financing

Attorney Vitt is correct regarding your first, if they are the ones to foreclose. Therefore, if they foreclose non-judicially, there is no further liability for the loan. The problem is your second. In some cases they are barred from seeking to collect the amount they are owed after a foreclosure. In other cases, they are not and may sue you for the balance. The difference between the two situations is very fact specific, so you need to sit with an attorney and review your two loans to determine if you are going to have any potential liability for the loans post-foreclosure.

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