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I am in a short sale process in california with bofa and my second was with bofa but old republic took it over. I originally bought the house in 2005 with a 80/20 but my second was a arm so the rates started rise and i refinanced my second not taking any money just locking in a rate. This made my second loan a recourse loan. Old republic now wants 11,000 to release the lien but they wont release the deficiency. They want over 30,000 to settle on an 90,000 dollar second. If i agree to the 11000 can they come after me for the deficiency even though I didn't take any money out. Should I go through with the short sale or just foreclose. Do they have a time limit to come after you for a deficiency. Thanks
I am in a short sale process in california with bofa and my second was with bofa but old republic took it over. I originally bought the house in 2005 with a 80/20 but my second was a arm so the rates started rise and i refinanced my second not taking any money just locking in a rate. This made my second loan a recourse loan. Old republic now wants 11,000 to release the lien but they wont release the deficiency. They want over 30,000 to settle on an 90,000 dollar second. If i agree to the 11000 can they come after me for the deficiency even though I didn't take any money out. Should I go through with the short sale or just foreclose. Do they have a time limit to come after you for a deficiency. Thanks
In California, your escrow company should have all that information. The title company and attorney info should be there as well to look over your documentation and ask about counsel.
I agree with others. An attorney may cost you $1000-2000 but will be money well worth spending.
As you stated California is usually a non recourse state but you did refinance which kinds of those things in limbo because of how California state laws treat refinances even though u didn't take money out.
Contact a local real estate or tax attorney to help you.
Each situation is different and I agree you should consult an attorney. If it is recourse (and the laws have recently changed in CA on this), there might still be a deficiency judgment even if the first forecloses on you. So don't count on that being a way out. Only a real estate attorney can look at your specific situation and give you the advice you need.
Seconds are usually lucky to get 10%. I'm surprised they are asking for 33%.
I will start looking for a good real estate attorney. Do they have to actually take you to court in front of a judge for a deficiency judgement?
No. In fact, they can wait up to 48 months, then put the judment on you and put a lien on any new property you have aquired. That's why you need a good attorney to answer your questions.
I am in a short sale process in california with bofa and my second was with bofa but old republic took it over. I originally bought the house in 2005 with a 80/20 but my second was a arm so the rates started rise and i refinanced my second not taking any money just locking in a rate. This made my second loan a recourse loan. Old republic now wants 11,000 to release the lien but they wont release the deficiency. They want over 30,000 to settle on an 90,000 dollar second. If i agree to the 11000 can they come after me for the deficiency even though I didn't take any money out. Should I go through with the short sale or just foreclose. Do they have a time limit to come after you for a deficiency. Thanks
What is the value of foreclosing? BOA is still going to come after you for the deficiency when the house sells at auction. Your only escape will be bankruptcy at that point.
You need a lawyer that can get the deficiency to go away. The normal amount due on a second trust on a shortsale is 10% max.
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