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Old 03-06-2009, 05:14 PM
 
1 posts, read 7,542 times
Reputation: 10

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My fiance and I are seriously considering making a business decision to cut our losses and foreclose on our condo, even though we are not in any financial hardship. If both loans are non-recourse we plan on missing this month's payments.

Loan Details:
3b/2.5b Condo, primary residence
Location: Orange County, California
Purchase Date: August 2006
Purchase Price: 499k
Current Value: approx 320k
80/20 with 60k down
1st Mortgage: Chase - 390k, 30yr fixed, 6.375%
2nd HELOC: Chase - 40k, adjustable prime rate

We are both on the title, but both loans are under my fiance's name only. Both loans have never been refinanced and the mortgage payment has never been late. The HELOC was initially a purchase-money 2nd (33k towards initial purchase) but we later used 8k to consolidate bills.

I'm quite positive that the primary loan is non-recourse. My main concern is that the HELOC won't be covered under CCP 580b due to the additional borrowing and Chase will pursue for a deficiency. We easily have enough savings to pay down the HELOC back to the original 33k borrowed for the initial purchase. Will that do the trick?

We also plan on removing my name from the title, given that my fiance is the sole obligor on the secured debt.
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Old 03-06-2009, 07:01 PM
 
Location: Cary NC
553 posts, read 2,081,945 times
Reputation: 303
This sounds like an attorney question. IMO sonce the banks are so inundated with delinquencies they may not even bother chasing you down. They may just charge off and call it a day. Of course there is no guarantee. If you have no intention of moving anytime soon and do not have financial hardship why would you bail? Eventually these values will increase when the media stops all of the doomsday reporting and you have to live somewhere.
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Old 03-06-2009, 10:04 PM
 
930 posts, read 2,121,226 times
Reputation: 1000
Quote:
Originally Posted by UnderH2O_OC View Post
The HELOC was initially a purchase-money 2nd (33k towards initial purchase) but we later used 8k to consolidate bills.
Dude, quit with the "to consolidate bills". Everyone of you clowns do that. Did you blow it on flat screen TVs and vacations to Hawaii or not?

If you used it to rebuild an orphanage then tell us that.
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