THE wife and children of an Irish man gunned down in the US are to lose their second home after the bank decided to foreclose on the property.

John O'Sullivan, originally from Kerry, was shot dead by his neighbour Kenneth Zimmerman outside his north California home last summer.

A foreclosure sale will take place this Thursday on their second property, which O'Sullivan's wife Krista Clem and their four children had moved into after losing their original home.

Clem told the Sunday Tribune, after spending Christmas in Ireland with her husband's family, she has no choice but to leave her ranch now things have deteriorated further.

"The really heartbreaking thing is that now a foreclosure sale has been noticed for next Tuesday on the house in Shelter Cove that we have moved into," she said.

"I guess next we will be evicted from there and then truly have nowhere. I had a plan for that home that would surely have worked, but apparently the bank has no intention of working with me and instead wants to do whatever it can to make things as difficult as possible for us."

O'Sullivan was killed following a stand-off with his neighbour last August. Zimmerman remains in police custody and his murder trial will begin later this year following a series of adjournments.

Clem and her children – Tessie (one), Michael (two), Lydia (eight) and Jacob (15) – have been left with financial troubles since the shooting and now face losing everything.

O'Sullivan and Clem had worked as property developers. She explained that in the past, it was her husband who had looked after their home loan with the bank.

"Almost all our belongings are in a 40 foot container," said Clem, who has considered moving here permanently.

"If I can sell enough I guess we'll have to send them to Ireland and then at least we'll be around people that care about us. Too much loss all at once, to say the least."

Zimmerman's trial has been delayed until May following a number of legal issues. O'Sullivan was shot three times – once in the side and twice in the back – evidence that helped ensure the accused's continued bail denial.

Despite their financial trouble, the O'Sullivans say they have continued to get help and support from family and friends, including during their Christmas visit to Kerry.