Second Mortgage in Oakland

Mostly not, because they are built around the home you live in. California's homestead exemption protects the debtor's principal dwelling from judgment creditors, and by statute the exemptions do not apply to the foreclosure of a deed of trust at all. The Homeowner Bill of Rights is limited to owner-occupied first liens securing a loan made for personal, family or household purposes, so a business-purpose second on a rental sits outside it on both counts. One rule does reach rentals: Code of Civil Procedure section 580e bars a deficiency after a lender-approved short sale of a dwelling of up to four units with no occupancy test, but it does not apply when the borrower is a corporation, LLC or limited partnership, so how you hold title matters. Business-purpose real estate lending is itself a licensed activity in California, under the California Financing Law or a real estate broker license. This is not legal advice; your attorney or title company has the final say. See the second mortgage program page for terms.

The second lender gets notice, a chance to cure, and a place in line for any surplus. California deeds of trust are usually foreclosed by trustee sale under the power of sale, and at least three months must pass after the notice of default is recorded before notice of sale can be given. Civil Code section 2924b requires notice of the default to be mailed, within one month of recording it, to the holder of any later-recorded deed of trust, and notice of the sale at least 20 days before it. Under section 2924c a junior lienholder can reinstate the senior loan until five business days before the sale date in the first notice of sale. If the sale brings more than the senior debt and costs, section 2924k pays junior liens in order of priority before anything goes to the owner. Under section 2924m a trustee sale of a 1 to 4 unit property is not final at the gavel, because eligible bidders such as tenants and prospective owner-occupants get a window after the sale. The sale is held in Alameda County, and the notice of sale states the location for each property. Read lien position explained before you stack debt.

Check the current county schedule; the newest dated one found took effect January 1, 2024. On that schedule a standard first page is $89.00, which already includes the state SB 2 Building Homes and Jobs Act component, each additional page is $3.00, and a deed of trust is one of the titles that adds a $10.00 Real Estate Fraud Prosecution fee. As an illustration, not a quote for your documents: a 12-page deed of trust would come to $89 + (11 x $3) + $10 = $132 on those lines. California's documentary transfer tax does not apply to an instrument given to secure a debt, and the state charges no mortgage tax. An Oakland deal records with the Alameda County Clerk-Recorder, which accepts electronic recording through authorized submitters. These are dated county figures, not a USAM cost; confirm them with the recorder or your title company.

Oakland has no short-term rental permit program, but it taxes the income. The city's own page says neither the Oakland Municipal Code nor the Planning Code specifically addresses short-term residential rentals. Stays of 30 consecutive days or less carry a 14% Transient Occupancy Tax under OMC chapter 4.24, and the city's landlord business tax rules (OMC 5.04.120) require owners of residential, commercial, industrial and short-term rental property to register and pay business tax. Short-term rentals are eligible under the program, subject to underwriting. California also lets a homeowners association ban rentals of 30 days or less (Civil Code section 4741).

A gross-receipts business tax and a per-unit program fee, every year. Oakland's general business tax rate for landlords is $13.95 per $1,000 of annual gross rental income, and residential landlords also pay the Rent Adjustment Program fee of $137 per unit per year. Under the Rent Adjustment Ordinance, a covered unit that is not registered in the city's rent registry cannot get a rent increase, so registration is a condition of the rent growth you may be counting on. Those costs come out of the same rent that has to carry the first and the second, so test the numbers in the second mortgage calculator before you size the loan.

Yes, if the property sits unused. Measure W, Oakland's Vacant Property Tax, charges $6,000 a year per residential parcel that is in use fewer than 50 days in a calendar year, unless an exemption applies; one exemption covers a parcel with a valid, active building permit for at least 50 days of the year. A rental in use fewer than 50 days of a calendar year, whether between tenants or held empty while you line up work, can trigger it. Plan the use of the property, and of the money from a second, so a long vacancy does not add a tax bill to two loan payments.