Purchase Money loan or not? (San Diego: sale, foreclosure, mortgage)

[Scotty Doesn't Know]

Hello All,

Im sorry if this topic has already been covered, but I could not locate any answers using the search engine. My basic question is whether or not I have a purchase money or non-purchase money loan. But first, some background.

I currently reside in California. My mortgage will begin adjusting later this year. The payments will eventually get to a point that I cannot afford. I am looking into the possibility of foreclosure now so that I am better prepared if/when I foreclose.

Much of the research that I have done has shown that a lender cannot pursue a deficiency judgment through judicial foreclosure if I have a purchase money loan and there is a power of sale clause in the deed of trust. In this case, I would be protected by anti-deficiency laws in California.

I purchased my home and took out one loan for the full purchase price, nothing more and nothing less. I have never refinanced nor have I pulled a HELOC. By all looks of it, it appears that I have a purchase money loan. However, one page of my loan docs entitled "SECTION 32 TRUTH IN LENDING WORKSHEET" has a box that is checked indicating that the loan is not a purchase money loan. This is the only place in the entire docs that mentions purchase money.

My question is, is my current mortgage a purchase money loan even though there is a document in the mortgage docs that indicates that it isn't? I want to make sure that I am free of a possible deficiency judgment, but this one page in my docs is causing me a great deal of concern.

Any help on this matter would be appreciated.

Thanks,

Scotty

[SoCalBear]

With the caveat, it's best to seek professional advice for the particulars of your situation, I found this article generally informative:

The California Foreclosure Rules or “So What Happens If I Let My California House Go Back To The Bank?� : San Diego Predatory Lending

[flo2900]

Originally Posted by Scotty Doesn't Know

Hello All,

Im sorry if this topic has already been covered, but I could not locate any answers using the search engine. My basic question is whether or not I have a purchase money or non-purchase money loan. But first, some background.

I currently reside in California. My mortgage will begin adjusting later this year. The payments will eventually get to a point that I cannot afford. I am looking into the possibility of foreclosure now so that I am better prepared if/when I foreclose.

Much of the research that I have done has shown that a lender cannot pursue a deficiency judgment through judicial foreclosure if I have a purchase money loan and there is a power of sale clause in the deed of trust. In this case, I would be protected by anti-deficiency laws in California.

I purchased my home and took out one loan for the full purchase price, nothing more and nothing less. I have never refinanced nor have I pulled a HELOC. By all looks of it, it appears that I have a purchase money loan. However, one page of my loan docs entitled "SECTION 32 TRUTH IN LENDING WORKSHEET" has a box that is checked indicating that the loan is not a purchase money loan. This is the only place in the entire docs that mentions purchase money.

My question is, is my current mortgage a purchase money loan even though there is a document in the mortgage docs that indicates that it isn't? I want to make sure that I am free of a possible deficiency judgment, but this one page in my docs is causing me a great deal of concern.

Any help on this matter would be appreciated.

Thanks,

Scotty

wait to see what obama is going to do....couple of days he said he`ll unveil the miracle...lol

[Scotty Doesn't Know]

Thanks for the article. While I had already seen much of its contents in other articles, I found the examples to be informative.

However, the article doesnt really address my question on whether or not my loan is a purchase money loan. Given the definitions given, it appears that I do have a purchase money loan. However, there is that dreaded form in the midst of my docs that say its not a purchase money loan.

Basically, I bought an apple, but have documents saying I bought an orange. Are purchase money loans actual titles given to loans by the lenders or are they "theoretical" titles given the facts surrounding the loans?