I'm new here! Great site!
Here is my question:
We bought our house in California in 2005 for $525000. It was 100% financing - 3 year fixed (we had a first for 80% and second 20% I believe.)
During year 2, we refinanced since the rate was about to adjust. We have a 1st with ING direct and a 2nd with National City. We took no cash out. About $8000 was rolled into the loan to pay for closing costs.
Would the refinance still be considered purchase money since we didn't take cash out?
We are working with a realtor to try to do a short sale as we are upside down by at least $200,000 probably more.
After reading I am scard that even if we are able to short sale it, they would come after us for the remaining $$.
Also, does the Debt Relief Mortgage Act cover a situation like this?
We are working with an experienced realtor and will consult a lawyer before we go ahead with anything.