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What are the tax/financial implications if I let my foreclosure go through and walk away from my property and mortgage

Antioch, CA |

Was unemployed for 6 months and fell behind. Now, notice of default has been received. Property is approx. 100K upside down. Mortgage is 280K with a 25K second. Home was refinanced in '05. I have cash assets received recently from an inheritance as well as 401k's IRA's etc. but do not want to save property. I want to walk away and start over. Can my cash assets be attached and will the lender come after me for the debt.

In addition, what is the statute of limitations on them filing suit?

Thank you!

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Attorney answers 2


If the 1st is foreclosing the 2nd can sue you for the $25k. The 1st cannot if they complete a non-judicial foreclosure on your primary residence. The 2nd has 4 years to sue you from the date of the breach.


If the home sells at auction for less than the mortgage, they have up to 4 years to sue you for a deficiency judgment.

THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. Answering this question does not create an attorney-client relationship or otherwise require further consultation.