Foreclosure Effect On Multiple State Property

[buddyforall]

I have two 2 properties currently, one is my own primary residence right now in calfornia and other is a investement property in dallas, texas. this is my situation

I lost my job last year and since than have been paying mortgages on both properties out of my savings, while the texas property is rented out and I am in positive cash flow on that house but the problem is that my california house which was 100% financed last year has negative equity, it is hard purchase money loan with no refinance and has never been rented out so I know that california being a non defeciency state lender cannot come after me if there is difference in net proceed realized after auction and my loan amount

by the way lender on both properties is same

I am ready to give up my house in california, this is what I am thinking

1) if I give deed in liu of foreclosure so lender will not have to go through lengthy foreclosure process and my california propety can thus be taken over by lender and sell in auction

2) i move to texas where I have very limited equity but low cost of living so I can do a job there and continue to pay mortgage on texas house

3) can a lender slap on the difference in sale proceeds from california propety to my loan balance in my property in texas

4) will a deed be better than just lender going with the full foreclosure instead

5) will the loss mitigation department of lender see my point and agree that they accept the deed

6) i am even ready to take a note from lender on calfornia property difference but only to a limited ammount of say $ 10,000 but the actual difference I suspect will be about $ 40,000

This is a particular situation and I will really appreciate any input from users to help me make a informed decision

[Mr. Knowitall]

can a lender slap on the difference in sale proceeds from california property to my loan balance in my property in texas

If this truly is a non-recourse situation and you lose the property to foreclosure, there would be no deficiency judgment to collect. If you negotiate something with the lender, you have to live up to your obligations under whatever agreement you reach. As this is the same lender, you have to be careful about any contract law claims they may have under your mortgage agreements, in relation to recourse against other properties; although I expect that they have no contractual remedy.

will a deed be better than just lender going with the full foreclosure instead

That depends upon what you are able to negotiate with your lender.

will the loss mitigation department of lender see my point and agree that they accept the deed

You can't know that until you ask them.

Try to get a free consultation with a bankruptcy lawyer, take the mortgage documentation with you to the consultation, and see if you can get an answer based upon the full facts and a review of your loan documents.

[buddyforall]

thank you mr knowit all

One last question, why should I consult a bankruptcy attorney, I do not intend to file bankruptcy,

Yes your suggestions are quite valid, I should negotiate with them first and show my loan documents to attorney first for any contract claims

thank you so much once again for posting your reply, I really appreciate it, may god bless you