House is now worth approx 90K less now- I have not worked in years and just sucking my savings dry- Problem is I refied (no cash) so now its considered a recourse loan in CA. Some RE people say they will not go after the rest of my savings- how real/false is that?
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If you have a mortgage on the property, and you signed a guarantee, then you are responsible for any deficit that you owe if you are foreclosed on, and the house sells for less than what you owe for it. They will pursue this amount, and will use any and all legal means to do so. If you have savings, they will get that as well in a judgment.
However, a deficit is unsecured debt, and can be discharged in bankruptcy, if you were to file one. If you can protect your savings amount depends upon your state's exemption levels.
Any Real Estate agent/broker who says that "they" will not come after you for the difference is sadly mistaken, and seems to just want your listing so that they can make money on it.
It is best to get this type of advice from a lawyer.Filed 8/08 - Discharged 11/08! Not tracking FICO.
Pre-Bankruptcy Net Worth: -$72,000... Today's net worth: $142,000.
If your FICO score just went higher than your net worth, and you are happy about this, you might have a financial problem!
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