Upside Down Mortgage

Home Loan Modification California

Question: What is the Consequence of foreclose home in California?

My girlfriend and I bought a house together a couple years ago for $340,000 (monthly payment of $3000/month) in California. Now our home value is $120,000. We decided that it is not worth keeping our house and thinking of letting it go. We tried loan modification but the bank only offered us $200 less/month which is not worth it for us. What is the consequence of letting our home foreclose? Can the bank come after us for the difference in loan if the bank sells it for foreclose home price? I know our credit will go down the drain, but for how long? We don't want our house...any other option?

Answer: It's difficult to say about what the bank will do as each lender operates a little differently and I am not a lawyer in California. Should the home go to foreclosure, the foreclosure attorney will have a 1099 produced, but that really is a question for your lender. Your credit will suffer for 3-5 years on two fronts, one, if you have begun to not pay the mortgage, you will start to accumilate late payments, these will take a year to cure. Also, if the property does become foreclosed, you will have a foreclosure on your hands and your talking a few years tor that to cure on your credit. Most legal entities will tell you to file bankruptcy, which would wipe the slate clean, but now your talking about 5-7 years of no financing. See if there is a reputable real estate agent in your area that does short sales, depending on your situation, you may be able to sell the property

Loan modification without upfront fees LOS ANGELES, CALIFORNIA

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