Shay's Video Presentation - California Deficiency Judgment Potential

Strategic_Default

LoanSafe Member
Oct 10, 2010
536
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Rancho Cordova, cA
Watch the video in post #1... You are correct. As the Professor explains in the video, Purchase Money mortgages are non-recourse. Even if the banks pursues a judicial foreclosure they still have no recourse and therefore cannot gain a deficiency judgement.
 

shoreline89

LoanSafe Member
Aug 29, 2011
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0
We refinanced our Wells Fargo first (only one loan, no second) on our California condo by doing a Wells Fargo 3-step refinance, so I'm pretty sure we have a recourse loan. We didn't take any money out. We bought the condo to live in, which we did, but have since moved out of state so it's rented.

My question is, how do you tell if it is a recourse loan; is it the language of the note or deed of trust? Also, what is the situation currently with deficiency judgements in CA; are they still unheard of? Also, do lenders check to see what kind of bank or retirement accounts you have during a foreclosure?
 

Strategic_Default

LoanSafe Member
Oct 10, 2010
536
7
0
Rancho Cordova, cA
If you refinanced, your loan is recourse if the bank chooses to pursue a judicial foreclosure. You don't have to worry about that because in CA no banks are using the judicial process on residential homes. If you have a 2nd mortgage, it will be recourse (if it was refinanced as well) and you could face a deficiency judgement on that loan.