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.
Comment by Wordpress Plugins — July 16, 2009 @ 6:14 pm
You’d be better off letting the Ca home go into foreclosure, not the NV one.
Absolutely they can go after you on the NV property. Everything is working against you. It is not your primary residence, you have other assets, and they can go after your wages, maybe even equity in the CA home, I don’t know on that.
The real question here is–will they come after you? It’s difficult to say with banks so busy with foreclosures and the bailouts. You need a lawyer.
Comment by Nancy B — July 16, 2009 @ 7:06 pm
If you are going to walk away from debt like that you might want to file for bankruptcy so they don’t come after you.
Comment by md_spide — July 17, 2009 @ 1:27 am