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recourse loan on investment property

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by Mardeflores, Mar 18, 2009.

  1. Mardeflores

    Mardeflores LoanSafe Member

    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.
  2. ProfessorShays

    ProfessorShays LoanSafe Member

    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.
    http://www.loansafe.org/forum/deed-...vs-foreclosure-when-theres-judgment-lien.html

    Daniel

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