Forum

Replies

  • Wayne Brooks January 3, 2014 at 4:11am
    Noelle, good news on the state tax issue. But can you clarify, in CA isn't only the original purchase money mortgage non recourse? If that mortgage is refinanced for any reason, is it still non recourse? Cash out refi's I believe do lose their non recourse status.
    • Noelle Haller-Riggs > Wayne Brooks January 3, 2014 at 6:25am

      Yes I believe you are correct and an attorney is a sellers best adviser on this issue, but I do find the following chart provided by CAR Legal helpful :

      Short Sale v. Judicial Foreclosure Is Homeowner (1-to-4 units) Generally Protected Against Deficiency?

      Type of Mortgage Loan

      After Short Sale *  

      After Judicial Foreclosure* 
      First Trust Deed

      Yes

      Yes, if purchase-money and owner-occupied
      Second or Other Junior Trust Deed

      Yes

      Yes, if purchase-money and owner-occupied

      Purchase Money Loan

      Yes

      Yes, if owner-occupied

      Rate-and-Term Refinance

      Yes

      No

      Cash-Out Refinance

      Yes

      No

      Owner Occupied Home

      Yes

      Yes, if purchase money

      Non-Owner Occupied Home

      Yes

      No
This reply was deleted.
********************************** like buttons ************************