My situation in California:
I owe 325K on a house worth about 225K. I did a refi at the peak of the bubble 6 years ago, and took out a little extra $$$ to cover some education expenses (no--I did NOT go shopping for boats, bikes, or other toys). Regardless, I apparently unknowingly screwed myself in terms of Now not qualifying under the non-recourse clause of California Code of Civil Procedure Section 580(b). (If I am WRONG on that--somebody please tell me!)
So here it is: I was thinking about a strategic default until I read that my refi excluded me from Recourse Protection--even in California, so if I did it anyway (short sale, strategic default, or whatever...)
1. Will they automatically "go after" me for this loan differential?
2. If not automatically, do they have a time limit on how long they can wait before pursuing a judgment?
3. Are tax considerations different for me---does that refi screw me in that way also?
4. Is there a possibility that the ORIGINAL principal at the time of the refi would still be eligible under CCCP580b? In other words--they could only pursue recourse for the amount of equity I took out (about $30K)?