Legal Question in Wills and Trusts in California

It would be necessary to see the loan documents to effecively answer your question. It may be that they are non recourse and you do not yet have personal liability. You really need to consult counsel to help you answer the question. It is likely there were notice requirements under the loan documents that have not been complied with. You also have the problem of properly transferring title.

If you simply leave, it is probable that the lender or lenders will foreclose and take the home. You would loose any equity you otherwise have. You could also consider a sale, which would allow you to retain the equity and the loan would be paid in the sale ( or partially paid in a short sale).

If you elect not to contact an attorney initially, you may want to consider consulting with a knowledgable real estate broker. My office works with Anna Amy, who is quite knowledgble in the area. She can be reached at 310-738 2822. She can assist in the valuation, remediation required and comparison with the loan situation. She also provides listing assistance for our clients at a 1% commission rate. This may not avoid your needing counsel, but may help you evaluate the economics to help you move forward.

Take action, whether it is to consult an attorney or a good realtor. Doing nothing is the worst action.

You never have personal liability if you do not sign the promissory note. The property, however, is subject to foreclosure of any security device that was recorded to secure the promissory note. Lawyers who specialize in this area use the term "subject to" meaning that your property is subject to a recorded deed of trust that can legally be foreclosed if you do not pay or satisfy the underlying obligation.