Legal Question in Real Estate Law in California

Re: Property abandonment

If the mortgage is the mortgage you got when you purchased the property, you will owe nothing to the mortgagor after the foreclosure sale. However, if you have refinanced, got a second loan or any liens are recorded against the property, those you will still owe, and could be sued. You may want to consider bankruptcy. In either a chapter 7 or chapter 13, you may "hand over the collateral", meaning, you can hand over the deed to the condo to the bankruptcy court and have no more liability.

Re: Property abandonment

You should confer w/ an attorney about negotiating an agreement with the foreclosing lender, perhaps a deed in lieu of foreclosure w/ an agreement for you to vacate, this way you avoid foreclosure and eviction. A foreclosure alone will ruin your credit.

Re: Property abandonment

Most people being foreclosed don't use lawyers, partly because they can't afford one at that stage, but mostly because they generally don't need one. There are of course exceptions, such as where the foreclosure is fraudulent or where the proceeds of foreclosure sale include sums due the borrower. In what way do you need to be 'protected from the bank?' Do you have reason to think the bank is going beyond its rights under the power of sale in the deed of trust?

As to your second question, merely leaving your condo and moving into an apartment isn't illegal; it would, however, be 'illegal' to tell an untruth on a credit application. Even to withhold mentioning the foreclosure might be fraudulent if a prospective landlord asks questions about your finances and mentioning the foreclosure is necessary to give a fair picture of your circumstances.

Also keep in mind that when a foreclosure process begins, a Notice of Default is recorded, and a good credit report will pick that up, so a careful prospective landlord may already know about the coming foreclosure sale.

Re: Property abandonment

In addition to the information that you have gotten from the other attorneys who have answered your question, you will remain liable for any HOA dues that accrue while you still the owner of record. HOA dues run with the land but are also a personal obligation and a bank foreclosure will not extinguish this liability. At one point in time, I was doing collection for over 400 condominium associations, so I know this area of the law fairly well. You can contact me office if you need a consultation. Your condo about a 5 minute drive from my office.

Re: Property abandonment

You may feel more comfortable with an attorney as your representative and to oversee the process. You may also wish to discuss bankruptcy options. Call me directly at 16192223504.