Foreclosure law in Calif.?

Question:

I am trying to sell my old house and have reduced the price as much as I can. I cannot continue making 2 house payments much longer. If I simply allow the house to go into foreclosure and the proceeds from the foreclosure sale are less that what is owed, am I liable for the difference? The hit I would take on my credit score is not a major concern at this point.

Answer:
depending on how and when you obtained the two loans you say you're paying, in California there is a deficiency judgement possibility for any shortfal in the repayment of a mortgage loan. However, in this day and age, recouping most of the loan without much of a legal hassle is usually sufficient for the lender to leave it be. I wouldn't advise you to just turn it (the house) over to the lender without doing whatever you can to "work" this matter out. How did you get yourself into this predicament in the first place? Have you contacted the lender to ask for some reprieve? Is there any equity in the house or have you used that all up? You may want to check with some additional internet resources, e.g., HUD, they have some good insights on the foreclosure process. Good luck

There are some sort of tax penalties.
Reduce the house price again.

yes you would be liable for the difference.

Foreclosure law in Calif.?

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