Re: California Judicial/Non Judicial concern


Posted by dr on January 25, 2009 at 23:28:00:
In Reply to: Re: California Judicial/Non Judicial concern
Posted by Jim V on January 25, 2009 at 22:52:30:1. THE PURCHASE MONEY RULE:

In California, a lender who loaned you money to BUY your home, which you ORIGINALLY moved into as your primary residence, cannot do anything other than foreclose. This means if the foreclosure sale does not pay all “purchase money” loans, those lenders cannot sue you for the unpaid balance. Most importantly, this includes second mortgages used in many 80/20 100% financing deals. If you REFINANCED any of these loans, or paid down purchase money HELOC and drew down on it again, this rule does not apply.


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