After a foreclosure, Can the 2nd mortgage go... - Free Foreclosure Help - Loan Modification Help

Chicky-D-Chick · #1 (**permalink**) 11-09-2007, 09:45 PM

...after my personal assets or business? the property is in CA. The original loan was 80/20 100% financing purchase money loan. The creditor is calling that I need to pay them, but I dont have the property anymore. Please help.

lisannem · #2 (**permalink**) 11-09-2007, 10:30 PM

From what I understand, if the loan was a purcahse money loan (not a result of a refi) the lender cannot persue a deficiency judgment.

Lisanne Jordan

877YouKeep · #3 (**permalink**) 11-11-2007, 10:23 PM

the judicial foreclosure allows the lender to obtain a personal judgment against the borrower for the outstanding amount owed on the loan after the foreclosure sale. This outstanding amount is called the deficiency, and the judgment against the borrower is called a deficiency judgment. However, a lender cannot obtain a deficiency judgment if the underlying debt arises from "purchase-price loan," which is either a "seller carry-back loan" or a third-party purchase price loan for a owner-occupied residential property that has no more than four units

Gonetodocs · #4 (**permalink**) 11-13-2007, 01:25 AM

I wonder if California being a non-judicial foreclosure state has any bearing on this issue? Do you think it will? From what you wrote 877 it seems like it might but I am not sure how these 2nd T.D.s' are going to play out in the Sort Sale / Loan Modification process. Are there any strategies posted here on the forum specifically in regards to 2nd TD negotiation strategies to help us pre-plan for the lenders response.

Approaching the lenders and a pseudo time-line on the forefront would help in formulating strategies and plans and help us be proactive in regards to modifying the loans. I should have another specific case this week to post for review.

Sorry I haven't posted lately been ultra busy.
Thanks again and hope I don't ask too many questions. Thanks guys
Gonetodocs