My question involves a foreclosure in the State of: CA
My wife and i bought our town home in the bay area in 2005 and lived there for 2 years. We refinanced the 2nd loan within a month of buying the home as the loan agent locked in a better rate. all the money was applied to paying for the intial 2nd mortgage.
We bought another home in 2007 and were hoping to sell the town home. We made the biggest mistake by buying the second home first and then trying to sell the first home.![]()
By then it became too late and the house sat on the market forever and we finally rented it out.
We are due for a interest rate adjustment on the primary loan of the rented home which was a 5/1 ARM. The rental home is now unaffordable...
We would like to keep our current home and foreclose on the rental home what are our options.

