Re: California Judicial/Non Judicial concern


Posted by Jim V on January 26, 2009 at 14:08:11:
In Reply to: Re: California Judicial/Non Judicial concern
Posted by Mike on January 26, 2009 at 05:11:16:Apologies Mike for getting into nuances that aren't necessarily relevant. dr and I aren't saying anything really different, I think I'm just a little more conservative in my outlook.

If your loans are both fixed rate purchase money for a 1-4 unit owner occupied property in California then you probably don't have a concern. dr posted part of CA Code 580b which sounds like it would apply in your case. If the loans are non-recourse, that should also alleviate any tax issues. You really want to verify this with an attorney just to make sure.

To clarify my concerns, which are really for other readers, first loans even if they are an option arm with a balance greater than the original loan amount will still be foreclosed non-judicially leaving the property owner with no liability. Helocs as a second loan can have cash-out and I'm not positive on their status when it becomes unsecured debt after the first's foreclosure.


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