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Anti-deficiency law in CA foreclosure with 2 loans

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whosjanedoe Joined: 18 Mar 2009 Posts: 1 1.45 Dollars($)	Posted: Wed Mar 18, 2009 12:39 am    Post subject: Anti-deficiency law in CA foreclosure with 2 loans Like 0 Dislike 0 I bought my house in CA with 0 down. I have a first for 80% and a home equity line for the remainder 20%. I never refinanced or took any more money out of the equity line and it's my primary residence. I know the anti-deficiency laws apply to the first mortgage, but will they also apply to the home equity line? Will I have to pay taxes on the difference between the borrowed money and the sale price? What are my options if I do a short sale?
sara Moderator Joined: 05 Jul 2006 Posts: 2694 Location: New Brunswick, New Jersey 496.42 Dollars($)	Posted: Wed Mar 18, 2009 3:08 am    Post subject: Like 0 Dislike 0 Hi whosjanedoe, You are correct that the anti-deficiency laws in California apply to the first mortgage. As far as your second mortgage (home equity line) is concerned, anti-deficiency laws will not apply to it. The second mortgage lender will have the right to collect the mortgage dues from you. If you cannot pay the dues, the lender may either charge off or forgive the debts. However, that will be the lender's discretion. The rules are same for short sale. The deficient amount from the first loan will not be charged but the second lender will be able to sue you to recover his loan. Take Care.
concerned Guest	Posted: Mon Sep 14, 2009 11:37 am    Post subject: antideficiency Like 0 Dislike 0 I have a refinanced morgage of 195,000 it is the only mortgage on the home which is my own personal residence am I protected under the anti deficiency law? ,or the one time action law?
savior70 Joined: 25 Mar 2009 Posts: 1895 Location: Florida 261.84 Dollars($)	Posted: Tue Sep 15, 2009 5:43 am    Post subject: Like 0 Dislike 0 To concerned, As far as I'm aware of, the anti-deficiency applies to only the purchase mortgage. When you refinance your purchase mortgage with a new mortgage, you're no longer protected under the anti-deficiency laws. However, different states have different anti-deficiency laws and the limit to which they protect the borrower also varies. Which state are you in? You ought to consult a foreclosure lawyer in your state to find out if the anti-deficiency laws in your state apply to your particular situation.
KDN CA Guest	Posted: Sat Jan 29, 2011 9:01 pm    Post subject: 2nd mortgage deficiency In California Like 0 Dislike 0 In 2004 my wife and I closed escrow and on the closing HUD 1 we had 2 loans, a 1st for 466,000 (secured by a deed of trust) and a 2nd of 93,500 (secured by a second deed of trust). The 2nd promissory note referenced an equity line of credit, but both deeds of trust were recorded on the day of purchase. We never refinanced. In July of 2010, the property was sold at auction by a trustee sale. A few days ago, I received a collection letter for approximately $ 97,000 (amount of 2nd plus fees and interest I assume). Are we liable, as both notes recorded on the date of purchase? Please advise. Thanks
Niicss Joined: 03 Oct 2005 Posts: 4831 Location: New Jersey 508.39 Dollars($)	Posted: Mon Jan 31, 2011 1:59 am    Post subject: Like 0 Dislike 0 I don't think you will be liable for paying the deficient balance to the lender as California is a non-recourse state.

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