recourse loan on investment property

[Mardeflores]

Hello all,

I am considering walking away from a rental property in Ca that has two recourse loans with C.W. totaling 300k. The house is now worth about 150k. I have a primary residence with about 200k in equity. Will the lender on my investment property come after my equity on my primary residence. If so , how can I protect my primary residence.

[ProfessorShays]

Your first loan will likely not be recourse because the lender will probably follow a non-judicial foreclosure path. That will probably not be the case with the second loan if I'm correct in sensing that it will lose its security interest as a result of the first loan's foreclosure. Therefore it will be treated as an unsecured loan for collection purposes.

I would encourage you to read the following thread relating to California homesteads.
Deed in Lieu vs Foreclosure when there's a judgment lien

Daniel