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  1. #1
    Join Date
    Mar 2008
    Posts
    21

    Default Liability After the Foreclosure

    My question involves a foreclosure in the State of: CA

    If I let my property go into Foreclosure, my 1st will be out around 90K and my 2nd will be out around 100K. Can they go after me for this money?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: After the Foreclosure

    Your "first" is a purchase money mortgage, or did you refinance at some point?

  3. #3
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Liability After the Foreclosure

    Here is a link to the foreclosure law in California;

    http://stopforeclosure.com/Californi...losure_Law.htm

  4. #4
    Join Date
    Apr 2008
    Location
    Calabasas, Ca
    Posts
    52

    Default Re: Liability After the Foreclosure

    According to California Code of Civil Procedure Section 580(b), it is our understanding, it is a no deficiency judgment policy if it is owner-occupied, residential property with one to four units and purchase money from the Sr. Lien and Chattel Mortgage. What we come to understand is this law excludes: vacation homes, home-equity lines of credit (HELOC), many if not most 2nd mortgages, investment properties where the borrower does not reside there, and apartment buildings more than 4 units. Disclaimer: This information is not to be considered legal advise. If you need legal advise we suggest contacting an attorney.

  5. #5
    Join Date
    Mar 2008
    Posts
    21

    Default Re: Liability After the Foreclosure

    I refi'd my first and took out a HELOC. With that said, they can go after me for the difference?

  6. #6
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Liability After the Foreclosure

    Quote Quoting Kamper420
    View Post
    I refi'd my first and took out a HELOC. With that said, they can go after me for the difference?
    Yes, a HELOC is NOT a purchase money first mortgage. So yes, they can come after you with a HELOC for a deficiency

  7. #7
    Join Date
    Apr 2008
    Location
    Calabasas, Ca
    Posts
    52

    Default Re: Liability After the Foreclosure

    Yes. For both.

    Refinance makes it no longer purchase money for the first.

    HELOC would not qualify as a Chatelle Mortgage nor was it purchase money.

    You may want to get an attorney.

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