Re: 80/20 in ca 580b nightmare won't end

The most important fact to know is if they were recourse or non-recourse. My understanding is the second is still an unsecured note after the sale of the first because the second as of the current date took no action, much less one action and 580 only seems to pertain to the note being foreclosed upon, and doesn't extend automatically to any other notes not involved in the action. So the note is still owed. The only question I have is did the notes merge when the same lender owned both notes, thus creating basically a single note legally and thus the second was covered by the action of the first. Of course a lawyer is needed here who specializes in this area of law. All I really know is I have collected on a junior note fitting these conditions and the borrowers lawyer didn't use this defense.