Legal Question in Real Estate Law in California

Re: if i default on my mortgage can they freeze my checking account?

It is an issue of what your loan documents say. On your first, I would say that it is unlikely that there is any cross-collateralization between your mortgage and your bank account, but you must read your loan documents to know for sure. On the second - the HELOC - its a little more likely. The only way to know for sure it to carefully read your loan documents, and/or have an attorney review them for you. Best suggestion is to move your bank account out of an abundance of caution. It will cost you very little to do so, and you can at least rest a little easier. It is also, frankly cheaper than hiring an attorney to review your loan documents.

That being said, however, post-foreclosure, you could potentially have exposure for a defiency on your second mortgage, and if they sue you and obtain a judgment for the deficiency, then and only then, they can levy your bank account regardless of what bank its at.

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