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knownick · 04-26-2009, 03:02 PM

If you are in California and both loans were taken out at the time of purchase to finance a primary residence, then both loans should be considered non-recourse and you would not be liable for either of them under CCP 580(b). The second lender may try to collect from you but my understanding of the law is you should be protected and would not owe the balance.

A lawyer could look at your loan documents and tell you for sure.

At any rate I certainly wouldn't pay the second in full before foreclosure. After foreclosure these lenders are settling with people for pennies on the dollar - and that is on recourse loans where they could get a deficiency judgment for the full amount.

Good luck to you.

04-26-2009, 03:02 PM	#2 (permalink)
knownick Senior Member Join Date: Apr 2009 Posts: 285 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: before we walk... If you are in California and both loans were taken out at the time of purchase to finance a primary residence, then both loans should be considered non-recourse and you would not be liable for either of them under CCP 580(b). The second lender may try to collect from you but my understanding of the law is you should be protected and would not owe the balance. A lawyer could look at your loan documents and tell you for sure. At any rate I certainly wouldn't pay the second in full before foreclosure. After foreclosure these lenders are settling with people for pennies on the dollar - and that is on recourse loans where they could get a deficiency judgment for the full amount. Good luck to you.