California mortgage deficit

aapl4theteacher · Joined: 16 Mar 2008 Posts: 7 3.60 Dollars($)

I've got a condo in Bakersfield, Ca. that I've been trying to short sale for the last 60 days -- at about 1/2 what I paid for it. I've got a second on it (from the same company as the first). Clearly -- I'm upside down.

Both of these loans were purchase money; will I be pursued for the deficiency for either a foreclosure or a short sale?

I'm a teacher facing layoffs -- and I've got some medical issues to boot, so I'm desperately trying to get rid of this enormous payment. Any help or advice would be appreciated

jerry

Hi aapl,

Since you are in California and the loans are purchase money loans, therefore you won't be pursued for deficiency as per the mortgage laws in the state. So, you can do a short sale but don't go for foreclosure as it will reduce your score too much compared to a short sale. By the way, what's your lender suggesting? has he approved the short sale yet?

There are in fact other ways to get out of this situation. Take a look at the ways you can try out in order to avoid a foreclosure . May be it can be even better than going for a short sale.

Thanks,

Jerry.

larry · Joined: 27 Jun 2007 Posts: 3074 431.95 Dollars($)

Hi aapl4theteacher,

Welcome to the forum.

It is good that you have tried to short sale the house to get rid of foreclosure but if you cannot be able to short sell the house then you can request your lender for DIL. Because DIL is at least better than foreclosure.

Best of luck,
Larry

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