A second lender can foreclose on your home if there is enough equity.
We have worked on several short sales and REOs, where when there is enough equity
in the house, and a 2nd realizes that they will get wiped out in a REO on the Court Steps, they
can start foreclosure proceedings prior to the First.
But always check the Note you signed, talk to your Bank or an Attorney.
The above links may be of interest to you.
If you refinance and took out money it could be considered a recourse loan. You should consult with your lender.
Richard Matusich Realtor DRE#00358728
From CAR legal services:
Anti-Deficiency Protection for Refinance Loans
Homeowners who default on their refinance loans are protected against personal liability for any deficiency following foreclosure. Under existing anti-deficiency law, a borrower is protected from personal liability for a purchase money loan secured by an owner-occupied property with one-to-four residential units. The new law extends that anti-deficiency protection to include any loan used to refinance the purchase money loan, plus any loan fees, costs, and related expenses for the refinance. The anti-deficiency protection, however, does not extend to any cash out in a refinance. This new law only applies to refinance loans or other credit transactions used to refinance a purchase money loan, or subsequent refinances of a purchase money loan, that are executed on or after January 1, 2013. For purposes of this law, any payment of principal shall be deemed to be applied first to the principal balance of the purchase money loan, and then to the principal balance of any new advance and interest payments shall be applied to any interest due and owing.
Senate Bill 1069 (codified as Cal. Code of Civ. Proc. Â§ 580b(c)) (effective January 1, 2013).
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
Of course, that is only my opinion and you should not make any plans or decisions based on that opinion. I am a Realtor and not an attorney. Ditto for you and the others who have answered.
If you want an opinion that you can rely on you should seek that of a professionalâ€¦an attorney.
Is anyone familiar with this new code? Thanks.
I recommend that you read the terms of both the Note and Deed of Trust and your loan documents very thoroughly to make absolutely certain that the terms of your loan are non recourse.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org