Legal Question in Real Estate Law in California

Forclosure Rental Property

I could not afford to make payment on my rental property. The property used to be my primary residence until I moved into a another house in 2005. The loan was refinanced in 2005 to take some cash out. If this property goes into forclosure, can the bank come after my other assets such as my current primary home, my wages, my bank account, etc. Please advise, Thank you so much


Asked on 7/16/08, 1:13 pm

4 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Forclosure Rental Property

Well, since it was a cash-out refi of a property that wasn't your intended primary residence at the time, you're pretty much out of defenses to a deficiency judgment, but the lender will still have to foreclose in court rather than by trustee sale. This is expensive and takes longer, so many lenders will forego the possibility of a deficiency judgment and take the easy route. You are more vulnerable if the deficiency is large, and if the lender is aware that you have a lot of other assets.

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Answered on 7/16/08, 2:02 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Forclosure Rental Property

If you have a second, then, yes. If you only have a first, it depends.

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Answered on 7/16/08, 5:51 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Forclosure Rental Property

If you have a second, then, yes. If you only have a first, it depends.

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Answered on 7/16/08, 5:51 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Forclosure Rental Property

Not if the bank forecloses by Trustee's sale. If the bank forecloses through a judicial foreclosure, then yes.

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Answered on 7/19/08, 3:20 pm


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