Foreclosure in California with 80/20 loan,...

[Tigg3cool]

...say I still owe on the 20? I had a home foreclosed ~ 1 year ago in California. I always thought in CA that foreclosures are non-recourse and they cant come after you for the money. Today I find out that they say the 20 "is not a purchase loan" and that its still owed. This is rediculous because I got the 80/20 at same time and the 20 absolutley was used as purchase money. Im wandering whats the deal with this?

[jeff a]

yep, you took out 2 loans to get the property... call that 2nd loan servicing company and work with them see what they are willing to do for you

[Searchlight Crusade]

First off, just because it was purchase money doesn't mean they can't seek a judgment - just that they're not supposed to be able to get it. But people fail to show for court all the time, causing the other side to win by default. It can be a good bet to make. Spend $100 filing the paperwork, and in a lot of cases, your company wins by default.Because it's junior financing, it should have been wiped out when the first mortgage foreclosed. However, if they got a default judgment on the deficiency, you may owe the money."the deal with this" is that you need an attorney to help you. Too many variables, and I'm not an attorney, and I doubt anyone else who answers will be, either.Lots of agents were selling property on the basis of 100% financing and "just walk away if it doesn't work out." That's not the case. Another reason you need an attorney is that you may have a case against the agent who sold you the property, for misrepresenting the law.