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This is a discussion on Question about loan classification within the California Attorneys forums, part of the Ask the Attorneys? category; So i'm pretty well versed in 580b and the protections provided, I went through the loan documents today and found ...
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| Senior Member Join Date: Apr 2009 Location: Orange County, CA
Posts: 42
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Question about loan classification So i'm pretty well versed in 580b and the protections provided, I went through the loan documents today and found this... Background: Property was purchased with a 1st and a 2nd loan (80/20), no cash out no refi, original purchase money for a primary residence/owner occupied. Loan 1 (80) had the following boxes checked: [x] Purchase [ ] Construction.... [x] Primary [ ] Secondary [ ] Investment Loan 2 (20) had the following boxes checked [x] Purchase [ ] Construction... [ ] Primary [x] Secondary [ ] Investment Is it standard practice to classify a 2nd TD used to purchase a primary residence as "secondary" in this case? It seems a bit odd to me since both loans are for the same property/same borrower and the 1st TD's loan docs have primary checked but the 2nd TD does not. I'm concerned because I know 580b covers primary/owner occupied properties and purchase money, I feel as though this checked box could give the impression to the 2nd TD holder that this was a 2nd property and therefore recourse. Any insight by attorneys, mortgage bankers, etc... would be greatly appreciated. Thanks a million! |
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| 580b, non-recourse, purchase money mortgage, recourse |
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