Legal Question in Real Estate Law in California

I live in California and lost my job. I own a house and can't may the mortgage. I live in a very expensive area and will need to short sale my house or do a deed in lieu of foreclosure. But, I need to find a place to live in order to get my things out of the current house. I found an area that is much more affordable, however, I want to make sure if I get a foreclosure in an affordable area, can the bank of my current house take away the new house if I then try to short sale or do a deed in lieu on the old house?

Two people who used to deal with mortgage loans felt they would not take away the new house but one other person said to contact Legal Aid to make sure because I can't afford an attorney. Im getting food assistance as it is and cna't afford a lawyer. Your help would be greatly appreciated.


Asked on 3/22/10, 2:47 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I see two issues here. First, if you can't afford a lawyer and are getting food assistance, it is very unlikely you can buy another house, so it seems to me any question about losing a replacement house is moot. Second, if you have a simple purchase-money loan with no seconds and no refinancings, your lender is pretty much limited to foreclosing and cannot pursue you for a deficiency after the foreclosure. I could be wrong on either matter.

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Answered on 3/27/10, 9:27 pm


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