Posted on: 24th Sep, 2009 02:03 pm
Hi jenkin7, and everybody. I've searched through wipopedia for 'purchase mortgage', but can't find any interpretation. Also, would this apply to the second? My home is in New Mexico. Would you know if there are 'anti deficiency laws' here? Thank-you very much.
hi begay,
a purchase money mortgage is the loan acquired to purchase your home from the seller. a refinance will not be considered as a purchase money mortgage. if your have purchased a second mortgage, it can apply to it as well. as far as i know, new mexico has anti-deficiency laws. thus, the deficient amount resulting from a sale of the property would be forgiven by the lender.
a purchase money mortgage is the loan acquired to purchase your home from the seller. a refinance will not be considered as a purchase money mortgage. if your have purchased a second mortgage, it can apply to it as well. as far as i know, new mexico has anti-deficiency laws. thus, the deficient amount resulting from a sale of the property would be forgiven by the lender.
its a mortgage or trust deed given by the purchaser to the seller as partial payment on the purchase price