Posted on: 21st Nov, 2009 11:45 am
CA is a non-deficiency state--If a second loan was part of the purchase there is no right to sue...they must only foreclose; QUESTION--is it correct that if the 2nd loan was NOT part of the purchase price but made after, then the 2nd lender CAN sue you? What if the lien is still on the property--must they first foreclose? then aren't they barred from pursuing deficiency or can they still?
hi janet,
as far as i know, if the second mortgage was not a part of the purchase price, then the lender can sue you for the deficient amount resulting from the foreclosure sale. if the second lender forecloses the property first, then they'll have to satisfy the mortgage dues of the first lender.
as far as i know, if the second mortgage was not a part of the purchase price, then the lender can sue you for the deficient amount resulting from the foreclosure sale. if the second lender forecloses the property first, then they'll have to satisfy the mortgage dues of the first lender.