Legal Question in Real Estate Law in California
Real Estate Law
If you voulentarialy surrender your house to your morgage lender and you have another house in your name that's paid off; can they come after you for the balance of your morgage after the house you surrendered is sold? Or is that a completly seperate propery that has nothing to do with the other? Which means can't come after us for the balance of the surrendered house?
2 Answers from Attorneys
Re: Real Estate Law
Yes. If the repossessed house loan was a refi, they will likely sue you for a deficiency judgment and levy on ALL your other assets, unless you have a written agreement with waiver of their right to do so [highly unlikely]. I never cease to be amazed at how many people are willfully unaware of, and disregard, the actual potential consequences of their actions.
Re: Real Estate Law
You have too much money riding in this situation to get information over the internet. The answer to your question depends upon several facts which you did not include. If there is only one loan on the second house and the lender uses the power of sale provision, they cannot generally cannot sue for a for the difference between the loan amount and the amount for which the property sells.
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