foreclossure and business ownership

Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

A foreclosure on your record would probably negatively affect your credit, which can in turn impair your ability to do business. If this was a judicial foreclosure, they may come after you for the deficiency. You should consult your own lawyer to protect your legal rights.

Unfortunately, you have not provided sufficient information for your answer to be effectively answered. In California, we have what is known as "anti deficiency" legislation which limits a lenders right to go after a mortgage holder in the event of foreclosure. To know whether or not you fall within this category it would be important to know what type of loans you have, and whether you had refinanced your mortgage.

Notwithstanding, most lenders are not going after the mortgage holder for any deficiency. What this means is they probably will not make a claim against your husband's business, or any of your other personal assets.

However, as stated by Mr. Mashal, a foreclosure will have a negative impact on your credit report and this will impact your husband's ability to acquire and maintain any business related credit and/or financing.

If your home is being foreclosed, you may want to consider speaking with an attorney as you have other options such as a “Deed in Lieu of Foreclosure” and possibly a short sale.

Disclaimer: The above information is provided for informational purposes only, does not constitute legal advice, and does not create an attorney client relationship.

I would strongly suggest you contact a local real estate attorney to minimize the impact foreclosure will have on your credit.