I purchased residence with 90/10 loans. Never refinanced. I understand under CA law debt incurred to purchase residence is automatically nonrecourse debt.
Is this correct and does it apply to both 1st/2nd?
I negotiated settlement with 2nd in 2009 but house was foreclosed on in 2010 (when only 1st remained) and I received a 1099 from the 2nd in 2009 indicating the borrower was personally liable. After communicating with bank they indicated CA deficiency laws do not apply in my case because debt was settled prior to foreclosure. Is this correct?
Thanks for the feedback.