“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
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If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.