Legal Question in Real Estate Law in California

Re: real estate law

False; if the loan was created at the time that the house was originally purchased (and not a refinance), and if there was no fraud involved in the making of the loan (like inflating income, etc,) then after a foreclosure the loan is extinguished. But, if the loan was made at any time other than at the time of purchase, the lender can pursue you for a deficiency judgment. If you are a guarantor, in the event the primary borrower defaults, then the lender will look to you for payment.

Re: real estate law

If there's only the first mortgage, that generally is correct if it's a nonjudicial foreclosure -- which most are. If there's a second mortgage and the foreclosing first doesn't make them whole, that might be a different story.

Re: real estate law

It depends on whether the loan was on a residence, if it was purchase money and whether the opt for non-judicial foreclosre. Still, I would be unsure and have to research the status of a personal guarantor.