Legal Question in Real Estate Law in California

Re: 2 homes, different states, ''walking away'' from 2nd home

I think Mr. Nelson is suggesting that you prepare and record a "Declaration of Homestead" covering your California home, and I agree. I also agree that you should consult with a bankruptcy attorney as far in advance of actually filing for bankruptcy as possible. Whether the lender(s) on the Missouri property can come after you for a deficiency if you let it go into foreclosure would probably depend upon Missouri law, and to get an answer based on Missouri law you'll need to re-ask your question on LawGuru as a California resident asking a question to which Missouri law will apply.

Re: 2 homes, different states, ''walking away'' from 2nd home

Filing bankruptcy means all your assets get turned over to the BK trustee, subject to certain listed 'exemptions', so he can distribute them to creditors pro rata. If you have equity in the home, after taking into account a 'homeowners exemption' that you should immediately file, and after the costs of sale and pay off of the mortgages, then it would be sold to obtain that equity. You'd better get sound advice from a BK attorney before making any such decisions.