My question involves a foreclosure in the State of: California
I have been scouring the internet regarding the issue of Deficiency Law, and have become very confused. There seems to be two sides to the story depending on who you listen to, but there seems to be an active discussion on this forum, so I thought I'd throw my hat in.
I purchased a home using the typical 80/20 interest only for (in my case) 5 years. My "second mortgage" is a HELOC through Wells Fargo. I have never refinanced my first or second mortgage.
My house has lost nearly 50% of its value and I need to get out of the situation before it gets worse. I am considering a short sale, deed in lieu, or a foreclosure, though it seems a foreclosure is the best option.
The prevailing thought on this forum seems to be that because my HELOC was opened and used entirely for the initial purchase of my home, and because I have not refinanced it in any way, it will not be subject to a "deficiency judgment". Am I getting that right?
How confident can I be? Should I pay attention to anecdotal reports on the internet of banks and/or collection agencies pursuing CA residents for HELOC money?
I appreciate any input, thank you.

