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Oregon Strategic Default HELOC question

Discussion in 'Foreclosure Laws' started by benny, Feb 9, 2012.

  1. benny

    benny LoanSafe Member

    I am planning on doing a strategic default. Purchased my condo for 230k, it is now worth about 60% of that. I have a 80/20 loan with WF. From my understanding it is non-recourse because it was all purchase money. My question is I have $5k in available credit in my HELOC. If I pull that money out of there will that open me up for recourse on the 2nd? Any help is greatly appreciated.
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thanks for joining the community.

    Have you ever pulled any money out of the HELOC in the past?
  3. benny

    benny LoanSafe Member

    Yes, I pulled out $500 for an appraisal when wf did a harp refi.
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Oh so you recently went through a HARP refinance?
  5. benny

    benny LoanSafe Member

    Yes, in january 2011
  6. benny

    benny LoanSafe Member

    The harp refi was only on the 1st. The heloc is the original.
  7. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Actually a HARP refi and any refinance will turn the mortgage into a recourse loan. The reason why it become recourse is because the lender taking a risk financing your loan. If they're going to lower your payments through a refi, you and your lender are taking an equal risk against future default.

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