[The Professor]

Catherine, you situation, given you've lost the non-recourse protection that existed prior to your refinance, isn't really that bad if you only have a first loan on the property. Your lender will undoubtedly follow the path of a non-judicial foreclosure under California Civil Code Section 2924b. The chances of them going through a judicial foreclosure in order to preserve their right to seek a deficiency judgment is extremely remote. Once they complete the non-judicial foreclosure, you are no longer personally liable on the debt.

I hope this eases your concerns. But we need to continue the dialog so that you have some idea on pre-foreclosure planning in the event the situation heads in that direction.

Daniel