Comments on: I have a 80/20 mortgage, i heard that in CA foreclosure the 2nd mortgage has special laws.?

By: D

Fri, 17 Jul 2009 09:06:59 +0000

All mortgage’s are secured by the property. All of them. That is why an appraisal is needed, etc. There is no special laws in California for a HELOC that would make it not be able to be foreclosed upon. Also when you get an 80/20 that is not a HELOC is it just a 2nd (a HELOC is when you have a line of credit) they would not do that for an original purchase. If that did is it extremely rare. Another thing is that California foreclosures are non-judicial meaning a judge is not even involved.
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Foreclosure professional and expert. I have performed thousands of foreclosures in the state of California.

By: Agnes C

Agnes C — Fri, 17 Jul 2009 08:50:59 +0000

If your second Mortgage is a "Purchase Money Mortgage" that means that the second mortgage was used to buy the property, the lender cannot pursue you for a deficiancy judgment.
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By: Gem

Gem — Fri, 17 Jul 2009 08:05:59 +0000

I doubt it, but who knows, California is one of the worst states in the country to try and operate business.

Anyway, if you haven’t "used" the HELOC, then what would you be sued for? You wouldn’t owe anything to be sued for.

Your question is not very clear, who is suing–the second mortgage/HELOC company that you haven’t used?

Or the first mortgage?
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