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Richard
Richard, Attorney
Category: Legal
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Experience:  Attorney with 29 years of experience.
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Current situation: My wife and I are married and both live

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Current situation:
My wife and I are married and both live here in California. Recently I filed Chapter 13 by myself and currently on a repayment plan for the next 2.5 years. Our house is currently under an approved loan modification and all payments are up to date. My wife just sold her overseas property and has some cash.

Question:
My wife intends to buy a condo here in California, under her name only. Her concern is could any of my creditors go after her condo?

Thank You,
Good evening. The short answer to your question is no. California is a non-deficiency state. Basically, deficiency judgments in California work like this: i) Deficiency judgments cannot be entered for foreclosures by private sale or on purchase money mortgages; and ii) A lender cannot get a deficiency judgment if it forecloses by private sale or if the underlying loan was a purchase-money loan. Notwithstanding the above, deficiency judgments can be entered on judicial sales of non-purchase money mortgages-provided however the defaulting borrower then has the right to redeem his property.

 

The botXXXXX XXXXXne of all this is that if you obtained a mortgage to purchase a home in California, you are not be responsible for any amount remaining unpaid after a foreclosure sale. As a result, other assets are not at risk. If your debt is not a purchase money mortgage, in reality, because of the right to redeem, most lenders in California waive the deficiency. If the deficiency is waived, so also is the right to redeem.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 6 years ago.
Pardon me for not fully understand the term you just stated. So, it would be safe for my wife to purchase a condo (all in cash), under her name, and not have to worry about loosing it just because I am under Chapter 13 payment plan. Thank you so much for your help.

Yes sir...that is correct. :)

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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