Upcoming Foreclosures

have a homesteaded primary in vegas and have to foreclose on ca. 2nd home. can vegas home be affected?

i have a home in las vegas that we recently homesteaded and we also left a home in california that we rented to family but familly has to move out and we are saddled with two mortgages. we may have to let california home go into foreclosure. im not sure what california laws stipulate after forclosure and what can happen to us. please let me know. thanks

Public Comments

1. Since it is not your primary residence, if there is a deficiency after the foreclosure auction, you would likely still owe money. If somehow the deficiency is forgiven, you would owe income tax on the deficiency unless insolvent. The debt forgiveness act to get you out of federal income tax only applies to primary residence. One way or another if there is a deficiency, you would still owe something to someone (either the lender, or the gov't for taxes)
2. I'd suggest you find another tenant. CA is one state that historically did not allow deficiency judgments, but there had been some significant pressure from lenders to get that addressed. I haven't kept up on CA law to see if they do now allow deficiency judgments. If they do now, the lender will place a lien on your LV home.