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?
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?
Your "first" is a purchase money mortgage, or did you refinance at some point?
Here is a link to the foreclosure law in California;
http://stopforeclosure.com/Californi...losure_Law.htm
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.
I refi'd my first and took out a HELOC. With that said, they can go after me for the difference?
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.