Homeowner Liability in San Diego
San Diego Legal Pros – Trusted Lawyer on Your Side
If you are having trouble making your mortgage payments, you are subject
to certain serious liabilities. If the bank forecloses on your home, this
can have several negative effects. Firstly, if the
foreclosure occurs as a judicial foreclosure rather than under a deed of trust, you
can be liable for any deficiency once the home is sold. This means that
if your loan balance is $250,000 but the home sells for $220,000, you
will personally have an outstanding debt of $30,000.
With the help of our San Diego bankruptcy attorney, you can:
- Effectively plan to avoid homeowner liability
- Determine the right approach
- Find alternatives to help prevent liabilities
There can be significant tax consequences following a foreclosure. A foreclosure
is treated as a sale by the IRS and there can be certain instances where
you will be deemed to have "gained" from the sale and thus incur
a tax liability. Some of these include having rolled over the gain from
a previous property into your current home or if cash was taken out during
a refinancing. If you had an equity line of credit or a second deed of
trust where there was an outstanding loan balance, this may also apply.
In certain circumstances, there can be similar consequences in cases of a
deed in lieu of foreclosure or a
short sale. The laws concerning such actions are very complex and a San Diego bankruptcy
lawyer should be consulted to explain how they would apply in your situation.
Call (888) 875-9190 to schedule your
Avoiding Homeowner Liability
At San Diego Legal Pros, we can assess the specifics of your situation
and how the above options would affect you. In some cases, it can be very
difficult to avoid a deficiency liability or negative tax and credit consequences.
Bankruptcy can be a viable option in order to protect yourself from such
ramifications. No deficiency liability can follow you if you declare
bankruptcy and there are also many tax protections built into the
process. In many cases, you can even keep your property while avoiding the negative
consequences that can follow you even if you lose it.
Contact a San Diego bankruptcy attorney
for help avoiding the
potential liabilities you face as a homeowner if you are having trouble
with your mortgage.