foreclosure in CA

I am one of people that have felt the houseing meltdown in USA.

I have gone thorugh hardship with my family.
My home is now worth $ 80.000 than I owe.
I am trying to do a modification with the bank.
So far so good.

But would can/would happenen if we dont agree on the terms.
I do understand they can forclose.

What would happenen since the they wouldnt get any where close to what I owe.

I know they can try to get a defiency judgement.
But they wouldnt gt anything from that.

Sometimes in life, we pay for services. Some people go to court and act as their own Attorney. I do not always recommend this. If you try to negotiate your loan modification on your own and you miss something, such as restructuring your loan package out of an Adjustable Rate Mortgage, you just might be upside down again within 6 months to 2 years.
The best thing to that I can tell you is you should consult a professional in Loan Modification before attempting to negotitate terms with the customer service/ collections department of a bank.

Why would you try and gamble with the most important asset you have - your home?

I have had houses for the last 31 years.
Even if this is my first in USA.
I know what to do and not to do.
And I wouldnt settle for anything less.
Then I would just walk away.
And give the house back.

My question is what happenes if they would forclose and they would do a defiency judgement and there would be no way for them to collect on it.

Thank you for your answer.


I’m having trouble figuring out what you actually worried about. Are you concerned about the unpaid loan balance if they foreclose on your property? If they foreclose on your property you will have to vacate your home. It will no longer be your home and you will have to move. The note, if uncollected will be on your credit report as a foreclosed debt.

Deed in Lieu of Foreclosure is only slightly better than foreclosure, but you do need to explore all your options before you choose either of these.

Now, you avoid foreclosure by giving your property back to the mortgage lender, and they can’t go after anything else by doiing a Deed in Lieu. They accept the deed instead of foreclosing or paying the loan, so there’s nothing else for them to go after. This is only slightly better than a foreclosure, but anything you can do to preserve your credit will help at this point.

Before you go this route, the first thing to do is to try to modify your loan structure with your bank. This is what most homeowners attempt as an option to stay in there home. In the lending climate that we are currently in; and with the guidelines being tightened every day, refinancing is usually not an option.

Thank you for your answer.
What you wrote I all know already.

So far they are intressted what I have to say.
Since they dont want to loose at least $ 80,000 and they know they cant get a judgement either.

It started one year ago and I was going to take cash out from my home.
At that time I had $ 150,000 in equity in my home .

I was just very unlucky and came across some very shady loan agents.
They couldnt came through.
But pretendedthey did and dragged me along.

The market was already starting to go down and fell fast during this time.

So in the end I was left no equity and now i have reported them and been advice by the investigaters to get a laywer since what they did was fraud.

So my question was more what can happen if they (lenders) know they cant get anything from a defiency judgement.
Is it anything they can still do.

Upon Default by the Mortgagor a lender Forecloses on the mortgage. The unpaid balance of the loan is $XXX,000. The property is sold at public Auction and brings $XX,000. The lender then seeks a deficiency judgment against the mortgagor to recover the $XX,000 shortage, plus foreclosure expenses.

Deficiency Judgment defined as:
Court order authorizing a lender to collect part of an outstanding debt from foreclosure and sale of the borrower’s mortgaged property or repossession of property securing a debt, after a finding that the property is worth less than the book value of the outstanding debt.

Legislation enacted during the Depression still restricts the availability of deficiency judgments in several states. In some jurisdictions, deficiency judgments are proscribed in certain situations, while in other states, they are limited to the amount by which the debt exceeds the fair market value of the property. Waiver, the intentional relinquishment of a known right, of the benefits conferred by antideficiency legislation contravenes public policy and is ineffective.

Deficiency Judgment - A deficiency judgment is the result of a judicial foreclosure, the process by which a lender takes you, the borrower, to court in an attempt to receive a judgment for the amount that they claim you owe them above and beyond the principal and interest you owe on your loan.
The lender has 90 days to start the motion for a deficiency judgement after a foreclosure sale and the market value of the property must be determined by the court.

In most cases, lenders do not pursue homeowners who have lost their homes to foreclosure and thereby incur a deficiency judgment. Although they may receive a 1099 income statement, lenders realize that they average person who looses their home to foreclosure, most likely will not have the funds to make due on a deficency judgment.

In certain states, most notably California, homeowners may not be liable for any deficiency on their mortgage, provided that the mortgage you have on your home is the original one you took out when you purchased the home. This “purchase money” security interest provision means that under California law, you are not entitled to pay deficiencies on your mortgage unless you have refinanced the mortgage since you bought the home. 2nd mortgages which were taken out at the same time as the “purchase money” or original mortgage may also be covered by this provision, however you must consult a legal professional for advice pertaining to your own situation.

In most states, the lender will not pursue obtaining a judgment to cure deficiencies unless the amount owed as a deficiency is very substantial. This is due primarily o the high cost of working through the courts ina judicial foreclosure. Most lenders prefer a non-judicial foreclosure.

If you are seeking information about a deficiency judgment, chances are you are looking down the barrel of a trustee or sherrif sale of your property during a foreclosure.

Do not think for a moment that the lender can not collect on a judgment. They can and usually do. They can garnish wages, retirements, seize and sell assets not to mention levy bank accounts. There is not a time limit on that either. Assume your situation improves over the next few years and you are able to sock some cash away, if the lender holding judgment finds your money.


In my case it is a bit different.
I am a citizent of another country.
I dont work here.
My reteriment is protect thorugh wills in my home country.
I only have my house here in US.
Nothing else.
So I dont believe they can do anything o me.

Then what are you worried about? You’re not being clear enough for us to help you?