Legal Question in Real Estate Law in California

Re: foreclosure bankruptcy

I am assuming that what you really want to know is what liability you will have if you walk away from the house and do not pay the mortgage(s) that encumber it. If the only mortgage(s) currently in existence against the house were given by you to secure loans that were used to purchase the house to live in as your primary residence, then you will have no personal liability on those loans if you just walk away (assuming you do not commit "waste", e.g. intentionally damage, the house) and, furthermore, there will be no tax consequences to you because you were never personally liable on those loans in the first place, pursuant to one of California's anti-deficiency laws.

If any loan that you walk away from was NOT used to purchase the house, or the house was not your primary residence, then you need to consult an attorney. You might be liable for a deficiency if you walk away and there may be tax consequences as well. A number of factors are involved that cannot be covered in detail in a forum such as this.