Legal Question in Credit and Debt Law in California

My wife and I are disabled. We have a refinanced loan that includes a 1st and 2nd mortgage both secured by the deed of trust. This loan is very bad as it is an interest only 1st for ten years and is reamortized in 2017 with the payment going up. The 2nd is on a thirty year note. We will never be able to pay it off. We expected to sell our house after our daughter graduated from college: but, the market was destroyed and we are now about 45% under water. We can't sell, refinance, rent and, the bank has refused to help us because we are not behind on anything. We do not qualify for any government programs as we have to much household income. (And we have a lot of debt)

Question: If we stop payments on our home and, we are refused a short sale by the bank; we may walkaway. Can they come after us after forclosure in California?

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Asked on 3/04/10, 6:49 pm

1 Answer from Attorneys
Diane Singleton-Smith Singleton Smith

The second could if the money from the second was not money used to purchase the home. You could consider bankruptcy if they come after you (if you qualify).

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Answered on 3/13/10, 4:20 pm


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