HELOC ... Purchase Money or Non-Purchase Money

Posted by Jerry - Ca. on October 03, 2008 at 15:01:46:

In Reply to: Re: CA Foreclosure process posted by dr on September 30, 2008 at 20:22:32:

There has been a diagreement between Investors and lenders as to whether a Home Equity Line of Credit (HELOC) obtained at the time of purchase is legally considered a Purchase money loan or a Non-Purchase money loan, which affectes whether the lender may be able to pursue a deficiency judgment!

Some have said that this type of loan is a purchase money loan. I do not understand how someone can get an home equity line of credit on something that they do NOT already own, which would make a Non-Purchadse Money loan!

Has there been any court issued deficiency judgments accepted or denied based on this type of loan, which would indicate what type of loan the courts believe it to be?

Jerry-Ca.
REConsortium.com

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