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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Yes - they get their 'One Action' Posted by Paul J. Molinaro on March 26, 2008 at 10:41 AM In Reply to: Yes - they get their 'One Action' posted by Troy on March 25, 2008 at 7:23 AM This thread brings up a tricky area. The term for the 2nd lender in the case where the first forecloses (trustee sale) is "sold out junior." If the loan is a recourse loan (basically, not a purchase money loan in California) then the sold out junior gets to go after the borrower. However, the usual case is that a borrower who just lost a property likely doesn't have anything to go after. That said, with the steep decline in California prices, some borrowers are making a financial decision to walk away from a property, even though they could have paid the mortgage. If the sold out junior were to realize that such a borrower had a little nest egg, that sold out junior might be tempted to try and collect. - Paul Follow Ups: Paul, what do you think? steve 9:19 PM, 03/26/08 (0) Re: 1099 cancels debt? Question 9:17 PM, 03/26/08 (1) That issue alone, No (NT) Tom 7:05 AM, 03/27/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : This thread brings up a tricky area. The term for the 2nd lender in the case where the first forecloses (trustee sale) is "sold out junior." If the loan is a recourse loan (basically, not a purchase money loan in California) then the sold out junior gets to go after the borrower. However, the usual case is that a borrower who just lost a property likely doesn't have anything to go after. That said, with the steep decline in California prices, some borrowers are making a financial decision to walk away from a property, even though they could have paid the mortgage. If the sold out junior were to realize that such a borrower had a little nest egg, that sold out junior might be tempted to try and collect. : - Paul [ 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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