Legal Question in Real Estate Law in California

There's no "law" that can help you to get out of your mortgage obligation. That's why I suppose this housing crisis is so bad. You can do like some homeowners and mail the bank the key and walk away, but that will damage your credit. If you're underwater on the loan, you can ask them for permission for a short-sale but that will take time, and it will also damage your credit if the house does not sell for the loan balance. You probably already know that if you're current on your mortgage payments, the bank does not want to do a loan mod with you. If you start falling behind, then of course, your credit is damaged, but the bank may be willing to do the loan mod to lower your payments so that it's easier to keep up. Also, a possible solution is that you could try renting out the house while you relocate. If all else fails, foreclosure is the last resort, but that will severely damage your credit, as you already know.

Larry L. Doan, Esq.

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