My question involves a foreclosure in the State of: California
I purchased my home here in California on a 192K/48K ((80/20 5 yr. ARM loan) last March 2004 and my 5yr fixed is ending which means I will be paying a high monthly mortgage this March 2009. Since I may not be able to afford payment anymore when the interest reset and the other reason is that I have other huge credit card bills, I am thinking of having it foreclosed. From past to the present I am only paying interest to these both loans
And sometime a year ago, since I still have some positive equity at that time I was tempted to take a Heloc from Chase on my 2nd mortgage in the amount of $15000 and is now added to the balance that I paid interest only every month. ( I think Chase modified my 2nd mortgage which I signed making it $63K instead of the original $48K)
If I have this home foreclosed will there be a possible deficiency judgement on the entire 2nd loan which is now about $ 63,000 or just the $15000 that I took?
Thanks in advance,