Upcoming Foreclosures

How to do a smart foreclosure that there is no deficiency amount in the process as per California laws?

My wife lost her income, and we can no longer make mortgage payments. I have 2 loans on my property. (loan 1 = 460,000 and Loan 2 = 60K). Loan 1 is a purchase loan, and loan 2 is a refinanced loan. Current property value is 320,000. I have been advised by a friend that if I stop making payments on the second loan, they would foreclose my house, and cannot come after me for the deficiency amount, and the laws of California would stop the first loan to go after me for the deficiency amount. Is that true ? Would it be the same for an investment property where I have a first loan of 280,000 and the heloc of 60,000. The property value currently is at 215,000 My friend's attorney told him that. Should I take his words on that, or how could I validate this information. Any web site ? Any other blog ? Help would be really appreciated thank you

Public Comments

1. I wouldn't trust your friend. If you stop making payments on any loan, lein or taxes they can foreclose. I would speak to an attorney before making such a risky decision.
2. Ask your friend for the statue on that -- doubt that he or she will be able to provide you with that law.