Re: Foreclosure in CA
A couple of suggestions for you...
From your post it sounds like the rental market in your area may be soft. If the rental is in good shape and is ready to rent, ocntinue to advertise it as you have probably have been, people still need shelter and you may have a good pool of folks in your area who are unable or unwilling to buy at this time but who still need somewhere to live. As long as you are still current on the mortgage payment on the rental, it may still be worth saving.
BTW, the bank will most likely not be willing to reterm the loan without some proof of financial hardship and without you being in default.
Refi-ing the loan may be an option assuming you are not over-leveraged on it.
If you are unable to find a renter within the next 30 days or so, and you go into default, then the answers to your questions will go like this:
1. The foreclosure action will be brought against the borrower(s) on the loan - not always against who is on title.
2. CA is a non-judicial foreclosure state for the most part and does not allow deficiency judgements against borrowers when a non-judicial foreclosure is pursued. If the bank cannot recoup 100% of the defaulted amount of their loan plus fees, etc. upon resale of the rental, you may be issued a 1099 to be reporter as additional income on your fed tax return. Your wife's credit will be significantly affected for up to 10 years to come.
3. Short selling the home is an option after you are in default.
4. See answer to #2
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