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Own 2 homes considering foreclosing primary

Posted on: 07th Jul, 2010 03:21 pm
hi,
here is my situation

i have rental property that has equity in it, but my primary is under water by 100k, bought this in 2005 and never refinance it, i also have heloc 70k taken after 2 years in 2007, i am thinking walking away form primary as it will nerver recover to original price, this is condo and my monthly payment is $3300. both homes are in ca bay area

my question is

1) give ca is non-recourse state and i never refinance, can lender foreclose judicially ???
2) can the come after after me for the deficiency ?
3) can i negotiate heloc after foreclosure.

what are my options ?

i am doing this bcs my wife lost 80k job 3 months ago, applied for modification and bank is not helping either,only answer i get is still working on it after waiting hrs on the phone from one department to other department.
Welcome roopsingh,

If you do not pay off the dues on time, the lender will be able to foreclose the property. As you never refinanced the loan, the first lender will not be able to come after you for the deficient balance resulting from the sale of your primary residence. As far as the HELOC is concerned, you should negotiate with your lender and check out if you can get it forgiven or reduced.
Posted on: 07th Jul, 2010 09:22 pm
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