Legal Question in Real Estate Law in California

We took out a business loan of 200,000.00 and signed our home as collateral. We made payment on time for a few years but when the crash came we were unable to pay on the loan. The time of paying off the loan came in 2012. Both my husband and I are on disability and cannot pay it. We keep getting calls from the bank but they have not sued us. Can they make us sell our home therefore leaving us homeless?


Asked on 6/18/15, 11:54 am

1 Answer from Attorneys
Allen Farshi Law Offices of Allen Farshi

Assuming you signed a deed of trust, the lender can foreclose. Unfortunately being on disability is not a defense. If the property is upside down the lender can still; bring an action for judicial foreclosure assuming it was a second deed of trust. You are well advised to talk to a experienced BK attorney to discuss a potential mortgage loan bifurcation. (may work if the property is upside down).

Read more
Answered on 7/06/15, 10:08 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California