In non-judicial foreclosure states like California, banks have to go to court before they can get any deficiency claims. Some banks won’t bother with the extra expense, but others will go that far to get hold of your assets. It doesn’t make you any less vulnerable. In fact, once you get back on your feet, creditors can almost instantly come knocking on your door.

Your best options are Loan Modification or short sale. They can be a bit more complicated, but if all goes well, you can walk away with technically no obligations. It all depends on the loan modification attorney or short sale negotiator you choose to work with.

So how much of a discount can you get with a short sale? These days, most banks are willing to write off up a substantial percent of your property’s value. For a bigger discount, you may have to sign a promissory note for the amount exceeded. It’s best to do it without such obligations, as they’ll only come back to attack your credit in the future. With a loan modification you are able to re-structure the terms of your existing loan and keep your home.

The bottom line is that you have two options: arrange a short sale or get a loan modification. Whatever you choose, Ahluwalia Law P. C. can help you. When you’re working with the right professionals, you can protect your assets no matter what happens to your home.