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 free consultation.
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.
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