How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I have an FHA loan on my primary residence in California. I may

Resolved Question:

I have an FHA loan on my primary residence in California. I may lose my home to foreclosure. I do not have a 2nd loan just the first will I be liable in anyway? Can I be pursued in the future with any judgements or liens?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Hello,

It does not appear that you can be held liable for any deficiency. Here is why.

In CA deficiency judgments can not be entered for foreclosures by private sale or on purchase money mortgages.


Most foreclosures in CA are nonjudicial. If the foreclosure was nonjudicial, a deficiency judgment cannot be entered against you. The lender then would take the property in full satisfaction of the debt.

Deficiency judgments can be entered on judicial sales of non-purchase money mortgage. However even in judicial sales regarding non purchase money mortgages the lender will typically not pursue a deficiency judgment as it entitles the defaulting borrower a right to redeem his property if he can pay the necessary charges and cure his arrears.


In summary, deficiency judgments are not usually entered in CA, but in some narrow instances they can be.

Ellen and other Bankruptcy Law Specialists are ready to help you