Legal Question in Real Estate Law in California

Real Estate penalties

I own a house that I have been living in for 4 years. I have a hard time paying the $4000 a month mortgage. If I bought another house that costs half as much and let my current home foreclose. What sort of penalties would I be liable for if any? Would they try to take my new house away from me?


Asked on 3/31/08, 5:32 pm

2 Answers from Attorneys
John Gibson

Re: Real Estate penalties

The downside of foreclosing is that you will take a significant hit on your credit score. Additionally, I doubt a lender would lend to you now if you are in default on one property or if you have a $4K/month home payment right now (your debt to income ratio will be too high to qualify).

It sounds like you may need a mortgage broker instead of an attorney on this one. If so, let me know. I know a very reputable and ethical mortgage broker.

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Answered on 3/31/08, 5:48 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Real Estate penalties

If you cannot sell the house you may want to defend against any attempt to foreclose. You can contact me for some suggestions if you want.

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Answered on 4/02/08, 12:43 am


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