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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Going from a secured lien to unsecured note... Posted by Ward-CA on July 13, 2010 at 1:22 AM In Reply to: Ca 80-20 foreclosure days away posted by Mikes holmes on July 07, 2010 at 8:13 PM Mike, The foreclosure action of your 1st trust deed will just wipe off the title of the real property all other junior recorded loans and liens. So the 2nd loan of yours is going to go through a metamorphosis of being secured by a trust deed to being an unsecured lien, as a consequence of the cathartic action of the foreclosure of the 1st. The creditor of the unsecured 2nd will still have a valid promissory note that survived the foreclosure of the 1st. Therefore the creditor can sue you in court for the balance owing on his unsecured note. ------------------Ward =================== Hello all again. My name is mike I posted on here some time Ago but it's been a Long while. I have an 80/20 loan taken out in July of 07. I am being foreclosed and the trustee sale is about 10 days away. I've done and tried everything to save or modify the house. I failed and I take full responsibility for it. I've researched all of the possible tax liabilities and I have a firm understanding of them. But a new issue arose. These loans were thought to be purchase loans. I got both the same day from the same title company and they recorded simultaneously. They are both 30 year fixed with no balloon. Lender 1 with the 80 has actually been fairly clear. They plan to foreclose and being a purchase Loan in ca they will be extinguished after the trustee sale. Number 2 with the 20 is possibly pulling scare tactics. They say now that they can and will pursue a deficiency judgment against me. I Advise them it's a purchase loan in ca and they say that it's not and that I should reread the title docs. I went to one title company on one day and signed one set of docs. Could they have sneaked in verbiage to evade the 580b rules?? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Mike, : The foreclosure action of your 1st trust deed will just wipe off the title of the real property all other junior recorded loans and liens. : So the 2nd loan of yours is going to go through a metamorphosis of being secured by a trust deed to being an unsecured lien, as a consequence of the cathartic action of the foreclosure of the 1st. : The creditor of the unsecured 2nd will still have a valid promissory note that survived the foreclosure of the 1st. : Therefore the creditor can sue you in court for the balance owing on his unsecured note. : : ------------------Ward : : =================== : : Hello all again. My name is mike I posted on here some time Ago but it's been a Long while. I have an 80/20 loan taken out in July of 07. I am being foreclosed and the trustee sale is about 10 days away. I've done and tried everything to save or modify the house. I failed and I take full responsibility for it. I've researched all of the possible tax liabilities and I have a firm understanding of them. But a new issue arose. These loans were thought to be purchase loans. I got both the same day from the same title company and they recorded simultaneously. They are both 30 year fixed with no balloon. Lender 1 with the 80 has actually been fairly clear. They plan to foreclose and being a purchase Loan in ca they will be extinguished after the trustee sale. Number 2 with the 20 is possibly pulling scare tactics. They say now that they can and will pursue a deficiency judgment against me. I Advise them it's a purchase loan in ca and they say that it's not and that I should reread the title docs. I went to one title company on one day and signed one set of docs. Could they have sneaked in verbiage to evade the 580b rules?? [ 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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