Hi. I've skimmed through so many posts with people worried about their 2nd going after them... I came across this person's post..
Does a California Refi Result in Loss of 580b Protection?
Does anybody know if this has been passed? Seems like a majority vote of 20 to 0 on the standard committee and it was awaiting the vote from the executive committee..
they all believe that it is common sense for the homeowner to refi purchase money if it made financial sense to do so and they're trying to amend the law where you are protected up to the amount of the original purchase price..
therefore the 2nd mortgage can only go after the difference between the new loan(s) and the original purchase loan(s)..
i did a non-cashout refi (but balance went up a little bit when they paid off a tax installment due in advance).. we got a terrible loan from the homebuilder (their incentives was 5k towards closing).. 80/20 - 5 year Interest only at 7% on a 1st and 11% on a 2nd..
we never intended to walk so we refied to a more stable loan at 30 year fixed 5.875% (principal AND interest) 1st and fixed 2nd at 7%.. what a major difference!
but now we are screwed when we decide because we lost our anti-deficiency protection by refinance our purchase money loans...