Legal Question in Real Estate Law in California
Question regarding 2nd loan default in California.
I have a first loan in the amount of $750K fixed 5.5% which was refinanced a few years ago. I also have a HELOC in the amount of $700K. Total debt on property is approximately $1.45M. A house down the street was foreclosed for $900K, but others are listing properties in the area for $1.1M. Also have $120K in credit card debt. Thus the house is under water by several hundred thousand dollars. Wife lost job but I am employed making $150K/yr. What would the outcome be if I stopped payment on 2nd loan only? Can the 2nd foreclose and get a deficiency? Can the 2nd sell the debt to a collection agency without foreclosing? How long is the foreclosure process typically? Any other advice or strategy to deal with this situation? I would like to save home but willing to walk away or BK if necessary.
1 Answer from Attorneys
Yes, the second can foreclose and get a deficiency and they can also sell the debt. You need to consult with a bankruptcy attorney. You look like a Ch. 13 candidate.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
