Legal Question in Real Estate Law in California

Re: Foreclosure

Roy is correct, but I would add that judicial foreclosure of residential real estate in California is very rare. They are far more expensive and time-consuming than nonjudicial foreclosures (trustee's sales) and, therefore, lenders usually only pursue them when the potential deficiency is very large and the borrower is very collectible.

The worse issue for you, possibly, is the potential for taxable debt forgiveness income in the event of a foreclosure. You should contact a tax expert to explore whether there are any exemptions that would apply to your situation.

Re: Foreclosure

It depends on whether the loans are purchase money loans. If they are not, and the lenders pursue judicial foreclosure, and actually obtain a deficiency judgment, yes. However, the lenders cannot simply attach your wages or bank account, they must first obtain some kind of judgment against you which would then allow them to execute on that judgment.