Foreclosure in Sausalito>Question Details

Remi, Home Seller in Marin

Under california law if our loan is modified (basically re-written right?) will this be considered a type of

Asked by Remi, Marin Sun Aug 24, 2008

refinance and will we be unprotected by the Purchase rule?

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2
CJ Brasiel’s answer
Remi,

Loan modifications are different from refinancing. Refinancing would trigger a "recourse" loan. Modifications maintain the original "purchase money" loan and is a "non-recourse" loan.

CJ
Web Reference: http://www.TalkToCJ.com
1 vote Thank Flag Link Sun Aug 24, 2008
In California a purchase money loan for an owner occupied 1-4 units does not subject you to a deficiency judgement on other assets if you default. The bank's only recourse is the home. If you refinance or add a second loan after purchase, those loans could make you vulnerable to recourse from the bank if the foreclosure sale proceeds do not equal your debt. You did not specify how your loan was modified.
I would ask the bank to put in writing that this is still a purchase money loan.
0 votes Thank Flag Link Mon Aug 25, 2008
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