Re: CA Foreclosure Question for Julio
Posted by Julio Martinez-Clark on April 23, 2008 at 16:07:17:
In Reply to: CA Foreclosure Question for Julio
Posted by David on April 23, 2008 at 07:57:32: David,
I recommend you study the information at www.sandiegopredatorylending.com/?p=33
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.
I hope this clarifies matters,
Julio Martinez-Clark
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