[Wear Peace]

deficiency judgement in California if it was used to buy home? I have a client who used 100% financing to buy a home. The terms were 80% for 1st mortgage TD and a 20% for 2nd mortgage TD. Now the clients are in foreclosure and will loose the home at trustee sale in a few weeks,. Because the 2nd TD is a line of equity loan it "could" be eligible for a deficiency judgment. However, because it was used as purchase money at the time the home was purchased, would it be considered a non recourse loan as the funds were used to purchase the home? ( California)