Clarification on 2nd
I have a first and second loan on my condo. Both are original purchase price loans. If the first loan goes into foreclosure, would the deed in trust for the second be extinguished? And if so, would it then be a non-secured loan that I would be held responsible to pay the deficiency? Or, does the CA "One-Action Law" cover both since they were both purchase price loans?
I have spoken to the loss-mitigation depts. from both lenders and the first is willing to consider a deed in lieu of, yet the second claims that is not an option since the title is not clear. Which is true?
I'm beginning to think that foreclosure is my best financial option, since my credit is already low, I have no equity in the home, the market is very low, my ARM adjusted well above what I can afford, and I have no desire to return to the real estate market any time soon. I just don't want to risk missing some little detail that could ruin more than my credit before I make such a big decision. Any advice/
