Legal Question in Real Estate Law in North Carolina

North Carolina non-recourse purchase money question:

I have an investment property in Durham, NC that has a 1st and 2nd mortgage on it. I am falling behind on the payments and am concerned about foreclosure and what the 2nd mortgage company can legally do. These loans were the original loans used to purchase the property and not refi's or heloc loans. With that said, I have read that the 2nd mortgage company cannot pursue a deficiency judgment against me in the event of nonpayment or foreclosure since North Carolina is a Non-Recourse state and that these loans were purchase money loans. Is that true, or can the mortgage company come after me for a deficiency judgment?

Thanks,

Tim


Asked on 5/31/09, 2:15 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: North Carolina non-recourse purchase money question:

North Carolina is not a non-recourse/no deficiency state. Unless the loan documents are expressly without recourse (very unlikely), the lender would have the right to pursue a deficiency judgment.

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Answered on 5/31/09, 4:04 pm


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