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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (28027)	3/11/2005 5:44:04 AM
From: Elroy Jetson	Respond to of 306849

Actually a California homeowner, unable to pay the mortgage, can give the house back to the bank when they have not refinanced the original loan. California and many "Trust Deed states" (perhaps all?) have anti-deficiency laws for "purchase money loans" only. "Mortgage states", like Texas, usually do not. "There are no deficiency rights in California for Purchase Money Loans. This is the loan you obtained in order to purchase the property. Once you refinance the property, take out an equity line of credit, obtain a consumer loan that is secured by the property, this rule no longer applies. The lender has the right to go after you in a deficiency judgement, even if a senior lien holder takes the property back and a junior loses his security instrument." manhattanmortgage.com Anti-Deficiency Laws Do Not Bar All Claims After Forclosure library.lp.findlaw.com .