Besides the "One Action Rule" The Senate also passed a bill in CA that says any Short Sale Approved with a 1st and 2nd is Final and no Deficiency can be pursued. In addition, in the State of CA the Seller is not obligated to Contribute Anything, if you are Retired you are Unemployed and generally no Pension, 401K or other assets are considered at risk. I just did one and the guy had $825k in a 401K and 4 pensions, 2 with him and 2 with his wife. Short Sale is always better than Foreclosure.
Answered by John B.
Tue Aug 21st 2012 at 4:39pm
In CA we have what is called the "one action rule". If the lender forecloses on what qualifies as your primary residence right now then they have taken their one action and cannot pursue collection on any deficiency. There are also laws in place that protect you from any tax consequences on properties that qualify as your primary residence. You would want to make sure that you consult with a tax professional for more information.
The bottom line is if you only have a 1st mortgage on a home in CA and they foreclose you typically do not need to worry about your retirement home, 401k or savings.
Answered by Michelle
Mon Jan 16th 2012 at 4:35pm
I was just thinking the same question as Bob, thanks Michelle!
Answered by grabritch3l
Tue May 1st 2012 at 5:19am