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Richard
Richard, Attorney
Category: Bankruptcy Law
Satisfied Customers: 54026
Experience:  Attorney with 29 years of experience.
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I own a property to being married and I'm going to lose that

Customer Question

I own a property to being married and I'm going to lose that property to foreclosure or short sale.
My wife bought a property after we were married and refinanced her other home to pay for that property, that we live in and both our names are ***** ***** property.
Can the lien holder on my house file claim to the property we live in?
Submitted: 10 months ago.
Category: Bankruptcy Law
Expert:  Richard replied 10 months ago.

Good evening. My name is ***** ***** I look forward to helping you.

No, the lienholder cannot pursue you or your other property. California is a non-deficiency state. Under CA’s statute, deficiency judgments cannot be entered for foreclosures by private sale or on purchase money mortgages. A lender cannot get a deficiency judgment if it forecloses by private sale or if the underlying loan was a purchase-money loan. In other words, if you obtained a mortgage to purchase a home in California, you have no personal liability for any amount remaining unpaid after a foreclosure sale. That keeps your other assets safe.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 10 months ago.
my prior home was refinanced and has a small second mortgage on the property, is your answer the same?
Expert:  Richard replied 10 months ago.

Thanks for following up. It depends. If it was refinanced on or after January 1, 2013 the lender would not be able to get a deficiency judgment as long as you didn't take refinance for more than the original loan. Even then, it's still not likely the lender would pursue a deficiency. The reason is that CA is a single-action state meaning that in order to pursue this the lender would have to pursue a judicial foreclosure. The reality is that though they could legally pursue you for the shortfall, lenders do not pursue foreclosures in this manner; rather, to save the time and expense, almost all lenders pursue a non-judicial foreclosure by simply pursuing foreclosure under their deed of trust giving them the lien rather than going through the courts. The second mortgage doesn't apply and the lender could pursue you for this. I'm sorry!

Expert:  Richard replied 10 months ago.

Good morning. I tried to accept your offer for a phone call but received the following message: Payment for this service failed, please do not fulfill yet. We will attempt to reach this customer to fix the situation. Keep an eye on the Request Center for an updated Phone Call Request.

Customer: replied 10 months ago.
Hello, Can you try accepting the phone call offer again or sending me one?
Expert:  Richard replied 10 months ago.

Sure...I'll extend the offer now.