I suggest that the best way for your father to resolve the situation he has with the California home is to try and sell it as a "short sale" if he owes more on the loans than the home is worth.In California, there is legislation passed in July 2011 where if a lender accepts any portion on a sale of real property in a short sale situation, the lender cannot sue the owner of the property for any deficiency even if the loan is not purchase money.I suggest that your father consult with an expereinced real estate attorney concerning the situation he is in and the best way to try and resolve the problem.