Legal Question in Real Estate Law in California

If you have a current mortgage that is an 80/20 combo purchase money first and second if you stop making payments on the second but not the first what legal action can the second take against you, if any?


Asked on 4/12/10, 12:33 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

In general, any holder of a promissory note secured by your real property can foreclose, whether the note being foreclosed is in first, last, or any other position. If the holder of a junior obligation forecloses, the buyer at foreclosure acquires the property "subject to" all the senior obligations. The borrower/debtor will not be subject to any attempt to get personal recourse for a deficiency as long as the loan or loans were purchase money for an owner-occupied home. There could be an exception if there are unusual circumstances like loan-application fraud or serious under-maintenance of the property.

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Answered on 4/17/10, 3:18 pm
Terry A. Nelson Nelson & Lawless

foreclosure and eviction.

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Answered on 4/19/10, 10:40 am


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