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Can they come after me for second mortgage amount?

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joella227 Joined: 03 May 2010 Posts: 4 1.95 Dollars($)	Posted: Tue May 04, 2010 3:24 pm    Post subject: Can they come after me for second mortgage amount? Like 0 Dislike 0 I purchased a home 5 years ago on a 80/10/10 loan in California (with the same lender). I've never refinanced the home. Due to the downturn of the economy, we're now in a non-judicial foreclosure proceeding. I'm aware of the One Action Rule in California regarding non-judicial foreclosures. Does that apply to both mortgages or just the main mortgage? I've read in some posts that the lender can sell the second mortgage to collection agencies and I'll still end up having to pay the loan. I'm not sure if this would be the same case if the lender is the same for both the first and second mortgage. Does anyone know anything about this?
jameshogg Joined: 20 Dec 2005 Posts: 10460 Location: Nevada 987.57 Dollars($)	Posted: Tue May 04, 2010 8:54 pm    Post subject: Like 0 Dislike 0 Hi joella, If both the loans are a part of your purchase money mortgage, then there are chances that the lender will not be able to come after you for the deficient balance resulting from both the mortgages. However, if it's a home equity loan, then the lender will be able to come after you for the dues or send it to collections. Thanks
joella227 Joined: 03 May 2010 Posts: 4 1.95 Dollars($)	Posted: Wed May 05, 2010 9:06 am    Post subject: Like 0 Dislike 0 Can I assume that it's part of the purchase money mortgage if the loan was taken out the same time when I purchased the home because I did not have 20% down payment? I think it's called a piggyback loan. I've never taken money out of the home after the purchase.
Niicss Joined: 03 Oct 2005 Posts: 4831 Location: New Jersey 508.39 Dollars($)	Posted: Thu May 06, 2010 4:22 am    Post subject: Like 0 Dislike 0 Yes joella, if you took out the mortgage at the time of purchasing the property, then it would be considered as a purchase money mortgage. _________________ Good is the Enemy of Great.

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