No matter how many foreclosure prevention/education events that we attend or work to coordinate we always find some good info or some new update that we had not been aware of. The other night, in the Portuguese cultural center in San Jose, about 20-25 attendees sat in an hour and half long event.
The speakers included tax attorney Anita Steberg, real estate attorney Anthony Ventura and Ana Rynoso, a HUD counselor from the NHSSV. The attorneys both dug deep into the Civil Code book to discuss how recourse and non-recourse loans would affect people. Although Ventura didn’t have the time to fully explain the various legal codes he mentioned that getting a grasp of statute CA 580 and civil code 2924 would be important. He also mentioned the one action rule where banks can’t obtain a deficiency judgment after one action occurs.
Steberg discussed the various 1099s (A, C) that people would or could receive depending on the scenario and whether the bank will cancel the debt. How long will the bank be able to chase the money after a deficiency judgment (four years) and how long can the IRS and state of CA chase people for taxes owed from 1099s (10 years and 20 years respectively).
The info may be scary to some people but it remains better to be armed and dangerous with information rather than sticking your head in the sand.