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We live in Arizona - I know that in our state, if you have your original mortgage and you foreclose, the lenders can not come after you for the money. However, does anyone know how it works with a refinanced mortgage? We refied a few years ago & have a 20/80 and have been hit with two medical disasters, so we don't have a lot of options. We will be going to an attorney, I just thought if anyone could shed some light on this, it could help. Thank you.
Non-recourse only applies to purchase money. Refi money is absolutely full recourse.
While refi money might be full recourse, I have never ever ever heard of a bank going after someone for money after a foreclosure. Not saying it doesnt happen, but if you cant pay your mortgage, why would a bank spend thousands more coming after someone to get a judgment against them, when there is no assets to attach.. (you already lost your home.)
Location: central, between Pepe's Tacos and Roberto's
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Originally Posted by pghquest
While refi money might be full recourse, I have never ever ever heard of a bank going after someone for money after a foreclosure. Not saying it doesnt happen, but if you cant pay your mortgage, why would a bank spend thousands more coming after someone to get a judgment against them, when there is no assets to attach.. (you already lost your home.)
That is an entirely different issue. I simply answered the OP's question.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,830,094 times
Reputation: 958
Quote:
Originally Posted by pghquest
Yes, but without all of the information. They COULD come after someone, doesnt mean they do.
I answered with all of the factual information I had. Banks have been known to go after people. Not consistently, and not on a large scale. However, I will leave assumptions about what the bank may or may not do to someone else. Refi money in the state of AZ is recourse, anything else will have to be hashed out between the OP, their lender, and their lawyer.
I spoke to an Atty and to a Banker that is very experienced on foreclosures. They both told me that 99.9 % of the time, they go for the home unless you have a pot of gold in your backyard. I believe the banker called it the " One action rule" meaning go for you or your home. I speak for CA only. Regardless if what I say is true or not, why the heck won't you get professional advice on something as big as this? I still need to meet with a CPA or Tax Atty. This is money worth spending for something that can kick your butt financially if you do something wrong.
in ohio, they want the judgement... maybe they figure you might come into money later on.. plus the statute of limitations on this is strange... the second lienholder has a year to obtain the judgement from the foreclosure date, once they do that .. the statute of limitations is 15 years..providing it is renewed every 5
they will come after people, they will just attach judgments onto those with good credit
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