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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Most Likely (read on) Posted by k2163 on March 21, 2008 at 8:50 PM In Reply to: Most Likely (read on) posted by Troy on March 21, 2008 at 5:20 PM You state: "However, if the 2nd loan was a HELOC and the HELOC was paid down then any re-draw on the HELOC is considered to now be a recourse draw; it is no longer a non-recourse loan. Silly, but true." I'm not trying to be rude but do you have an authoritative citation for that conclusion? I beleive you may be correct but all the cases I've read do not cover such a fact pattern and I've read most of the big cases. California just for clairification. Cheers, Ken : Matt, most likely the 2nd that was wiped out can NOT pursue a deficiency judgement OR issue a 1099 to the borrower. It was purchase money and therefore w/out recourse. : However, if the 2nd loan was a HELOC and the HELOC was paid down then any re-draw on the HELOC is considered to now be a recourse draw; it is no longer a non-recourse loan. Silly, but true. : Troy : : If the 1st and 2nd liens are California purchase money loans (different lenders) and the first forecloses and thereby wipes the 2nd, is the 2nd thereby prevented from seeking a deficiency judgment against the borrower after the FC because of the purchase money status of the loan? : : Thanks, Matt Follow Ups: One more thought ... Troy 10:55 PM, 03/21/08 (0) Best source that I've found Rick, the Probate Guy 10:10 PM, 03/21/08 (1) Urban Cowboys ride strange Hosses! (nt) Bill H 12:24 AM, 03/22/08 (0) Re: Most Likely (read on) Troy 9:53 PM, 03/21/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : You state: : "However, if the 2nd loan was a HELOC and the HELOC was paid down then any re-draw on the HELOC is considered to now be a recourse draw; it is no longer a non-recourse loan. Silly, but true." : I'm not trying to be rude but do you have an authoritative citation for that conclusion? I beleive you may be correct but all the cases I've read do not cover such a fact pattern and I've read most of the big cases. California just for clairification. : Cheers, : Ken : : Matt, most likely the 2nd that was wiped out can NOT pursue a deficiency judgement OR issue a 1099 to the borrower. It was purchase money and therefore w/out recourse. : : However, if the 2nd loan was a HELOC and the HELOC was paid down then any re-draw on the HELOC is considered to now be a recourse draw; it is no longer a non-recourse loan. Silly, but true. : : Troy : : : If the 1st and 2nd liens are California purchase money loans (different lenders) and the first forecloses and thereby wipes the 2nd, is the 2nd thereby prevented from seeking a deficiency judgment against the borrower after the FC because of the purchase money status of the loan? : : : Thanks, Matt [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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