Foreclosed? You may still owe your second mortgage.

more+
less-

If you lost your home to foreclosure in California, you may still owe your second (and other) mortgages.

California is a "non-recourse" state, meaning that mortgages taken for the purpose of buying a home do not remain personal debts of the borrower after a foreclosure that doesn't fully pay those mortgages. But other loans that placed mortgages on that property, obtained for reasons other than the original purchase, do remain the personal debt of the borrower. The lender(s) may sue to collect the amounts remaining on those additional home loans, including money taken from home equity lines of credit (HELOC). This can be a very unpleasant surprise to people who have just lost their homes to foreclosure.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Malcolm Ruthven | Attorney Advertising

Written by:

more+
less-

Malcolm Ruthven on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×