Legal Question in Real Estate Law in California

I owe the bank at least $100,000 more on my 12 year old primary residence than what it may sell for. I had put down $50,000 down payment. I owe the bank at least $200,000 more on my investment rental condominium than what it may sell for. I bought this property 8 years ago and put down $100,000 down payments. The current tenant has been staying for the past two years. Having talked with the lender has produced no results. I plan to stop making mortgage, HOA, and property taxes payments.

Can I continue to collect rent during the foreclosure?

Can I stop making the monthly HOA dues during the foreclosure without liability?

How long can I delay the foreclosure to stay rent free in my primary residence and collect rent to recover at least some part of my down payments?

Please introduce me a good lawyer who can help me out. I live in Bay area. Thanks.


Asked on 1/01/12, 5:11 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

What foreclosure? Talk to a bankruptcy attorney right away. Filing Chapter 13 will instantly stop any foreclosure and could result in the reduction in principal and/or interest payments on your investment property. New court decisions may even enable you to reduce the principal and interest on your primary residence, provided you move out before filing (you can't reduce the principal and interest on a primary residence in a Chapter 13, but there's a recent court decision from the 9th Circuit Bankruptcy Appellate Panel that redefines the term "primary residence.") However, I don't know any bankruptcy attorneys in the Bay Area. You might wish to consult a local bar association or association of consumer bankruptcy attorneys.

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Answered on 1/01/12, 5:44 am


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