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Mortgage Underwater Options

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splusrplusk Joined: 12 Aug 2010 Posts: 1 1.00 Dollars($)	Posted: Thu Aug 12, 2010 10:51 pm    Post subject: Mortgage Underwater Options Like 0 Dislike 0 I purchase a home in 2007(in CA) for 560K. Did a down payment of 56K(most of my savings at that point) and took interest only(416K) + Home Equity (90K) loans. The current market price of this house is around 400K.I have made all my mortgage payments on time but with so many new condos coming in the neighbourhood and with so many floreclosures I'm thinking if it is really any worth pouring anymore money into this house. I tried to work with the Lender and they said as my payments have been current so far, there is nothing they can do. If I leave the house, can I lender come behind me? I've heard that there are some CA rules that does not let lenders go behind the home owners if they leave the house. Is this true? Any other suggestions?
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Fri Aug 13, 2010 2:37 am    Post subject: Like 0 Dislike 0 Hi splusrplusk, California is a non-recourse state. If you walkaway from the property, the lender will be able to foreclose it but he won't be able to come after you for the deficient balance resulting from the sale of the property. _________________ Procrastination is the enemy of your financial success

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