Does My Loan Mod Open me up to a Deficiency Judgment in California?
By Gene Riemenschneider, Turning Houses into Homes
(Home Point Real Estate)
Does My Loan Modification Open me up to a Deficiency Judgment in California? California is a non-Deficiency Judgment state on Purchase Money Loans foreclosed under a Trustee Sale. In short if you purchased a home with a $500,000.00 loan and never refinanced; then the home is foreclosed on and fetches $300,000.00 at the Trustee Sale. There is a $200,000.00 Deficiency. The bank cannot pursue you for this difference. The Home Alone Stands For the Loan. A Short Sale may be the Best Solution – Go here for Short Sale Info! The State of California has expanded this some to include 2nd mortgages. However, the question has been asked, “If a buyer does a Modification of the original purchase loan is it still a non-Recourse (non-Deficiency) Loan?” My initial reaction is that it is still a non-Reco...