World's Largest Mortgage Community

SHORT SALE 2ND LOANS

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
JEN Guest	Posted: Thu Jul 02, 2009 3:10 pm    Post subject: SHORT SALE 2ND LOANS Does a lender of a 2nd purchase money loan (Not a line of credit) in the State of California who agrees to accept a short payoff to release the lien still have the right to go after the Seller for the balance? I thought if it was owner occupied, 1-4 family residence and purchase money the lender could not seek a deficiancy judgement. Please clarify. Thanks. Jen _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jenkin7 Joined: 04 Jun 2007 Posts: 4282 Location: Hawaii 675.69 Dollars($)	Posted: Thu Jul 02, 2009 11:49 pm    Post subject: Hi Jen, The second mortgage holder can seek deficiency judgment against a borrower. But as far as I know, California has some strong anti-deficiency laws that protect the borrower from any such deficiency judgments. You can check with a lawyer whether the anti-deficiency laws apply in your situation. However, if the lender agrees to accept a short payoff during the negotiations, they should not come after for the deficiency. Thus, it is better to get it in writing from the lender if they say they will happy with a short payoff.

Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0