NetNews Usenet Archive 1992 #31/NN_1992_31.iso/spool/misc/invest/realest/1137

Text File | 1992-12-24 | 1.7 KB | 41 lines

Newsgroups: misc.invest.real-estate
Path: sparky!uunet!spool.mu.edu!uwm.edu!cs.utexas.edu!geraldo.cc.utexas.edu!portal.austin.ibm.com!awdprime.austin.ibm.com!alexg
From: [e-mail] ()
Subject: Re: Secured Loans,Mortgages and Liability
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Date: Thu, 24 Dec 1992 14:45:38 GMT
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To your luck California is not a deficiency judgement state. That means
lenders can only come after the collateral specified in the Deed of Trust
to secure a note. If there is a deficiency after they exercise the
foreclosure sale they can't come after you personally,
that's after your other assets.

Not so in deficiency judgement states. For example, in Texas after the real
estate crisis of mid 80s, a lot of lenders foreclosed on commercial real
estate borrowers right then. Foreclosure auctions did not satisfied the lien
thereby creating a deficiency. But those lenders waited for several years
until now before exercising there right to come after defaulted borrowers
for the amount of deficiency.

There is an excellent book on legal pecularities of real estate financing
from "The First Tuesday" titled "Real Estate Financing". Probalbly most
comprehensive book on the subject written by an attorney. It has a lot of
staff common for the U.S. lending, but also a lot of specifics for
California.

"First Tuesday" also has a superbook "Real Estate Taxation Aspects", a must
reading for any real estate investor.

I bought them a couple of years ago in Mission College book store in
Santa Clara.

- Alex Gurevich     [e-mail]