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1st Mortgage on a your primary residence.

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j_palomeras Joined: 16 Mar 2009 Posts: 1 1.36 Dollars($)	Posted: Mon Mar 16, 2009 3:01 pm    Post subject: 1st Mortgage on a your primary residence. Like 0 Dislike 0 I have heard that in the California law especially when it concerns the ist mortgage is that if a person is unable to make their monthly obligation to make the mortgage payments due to the person losing their jobs, and that it's impossible to make such payments in the future- one could submit the keys to the property and a letter signifying that the owner is relinquishing the property to the lender volunteeringly, is the debt (1st mortgage) considered to be paid in full? If this is true? What California Law enables this to happen? And which wording in the mortgage contract enables this to happen? Is this better than forclosure? How is this affect your credit in this manner?
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Mon Mar 16, 2009 7:30 pm    Post subject: Like 0 Dislike 0 Hi j_palomeras! Welcome to forums! As far as I know, California is an anti-deficiency state. If you walkaway from the property, the lender will foreclose the property but will not be able to sue you for the deficient amount resulting from the sale of the property. As far as effect on the credit is concerned, your credit score will go down by 250 points. Feel free to ask if you have further queries. Sussane

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