Colli Real Estate

Foreclosure – Recourse or non-recourse?

I live in CA but have a investment prop in Nevada that I want to walk away from because I am about 100K upside down in my mortgage. I read that CA is non-recourse state and NV is a recourse state. What I am wondering is whether the situation applies to where I live or where I bought the property. In other words, if I walk away and foreclose, can the lender get after me for the delinquent amount somehow? Thanks, G

It’s where you bought the property. Doesn’t matter that you live in CA – this loan and this property are in NV, making it recourse.

If you walk away and let it foreclose they can (and most likely will) come after you for the balance. Bankruptcy is usually the only way out of that.

They can attach liens to your home in CA or even garnish your wages. You are going to need much more help than people on Yahoo answers can give you.

good luck! (you are going to need it)

ps – you’d be much better off if you would short sale or deed-in-lieu of foreclosure where they don’t come after you for the balance (as part of the agreement). You need to be pro-active here and not ‘let it go’ to foreclosure.

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Tags:   deficiencyjudgement · economics · fanniemae · foreclosure · mortgageNo Comments