Can the Bank come after me for my 2nd mortgage after I foreclose or do a Short Sale?
Wednesday, April 7th, 2010
Yes, in some cases the Bank can come after you for a 2nd Mortgage even if you’ve Foreclosed or done a Short-Sale on the property. In the State of California, you are responsible for paying back your 2nd mortgage no matter what if it’s considered to be a “Recourse Loan”. A Recourse Loan is when you got your 2nd mortgage after you purchased the home. In other words, if you got your 2nd mortgage at the time you purchased your home, then it should be considered a Non-Recourse loan. That would mean that if you foreclosed on the property or did a short-sale, the Bank wouldn’t be able to come after you for the balance owed on the 2nd mortgage. However, if you got your 2nd mortgage after you purchased the home with a Refinance or Equity line of Credit, then it is considered to be a Recourse Loan in the State of California and the bank CAN come after you for the balance unpaid. Now, I’m not a Real Estate Attorney, and I always recommend you consult a Professional when considering such important matters. In this case, you should Contact Dan Kehr, with Kehr Law at 619.823.8230 for any questions regarding Real Estate Law.
If you want to side-step any Tax Liability, 2nd mortgage recourse liability, auto lease liability or eliminate all of your credit card debt strategically, then I recommend you call William McDonald with the McDonald Legal Group before you Foreclose or do a Short Sale on your property. Timing is everything and the timing will be better sooner rather than later.
Hope it helps!
Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com