Foreclosure in Lancaster>Question Details

Chevy95ss, Home Owner in Lancaster, CA

my house foreclosed in ca, i have a 2nd which was used to purchase the home, what happens to the 2nd now

Asked by Chevy95ss, Lancaster, CA Tue Aug 16, 2011

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As long as the second loan was part of the initial purchase, it is considered as a non recourse loan, it is forgiven by the bank.
Cesar Jimenez
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0 votes Thank Flag Link Wed Aug 17, 2011
If you had a 1st & a 2nd lien & both loans were used to purchase the house, the bank won't come after you for a deficiency judgment, this is what it means when you hear that California is a NON-RECOURSE state.
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Tue Aug 16, 2011
The second loan is probably subordinated under the first. If the first lender that foreclosed sells and takes a loss, the second lender will most likely get nothing or very little.
0 votes Thank Flag Link Tue Aug 16, 2011
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