Information on California Recourse Loan

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  • RR
    Apr, 2014
    Rony
    I purchased my property in December 2005 for $525,000. I financed my loan with first mortgage of $421,000 and second HELOC for $79,000. I never refinanced my loan. I short sold my home last year for $336,000. Bank issued a 1099-C to me. Is this a recourse loan?
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  • JJ
    Jun, 2012
    jon
    I have a 1st time buyer 30 year fixed fha loan in California, never refinanced. Is this loan recourse or non-recourse? Thanks
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  • QW
    Mar, 2012
    Quinn
    Dear Bill, I had my interest rates lowered on my first loan of $455,000 from 6.5% to 3. 75% two years ago even though I had no equity in the house. I left my second alone($160,000) and did not refinance that loan. I contacted the lenders of my first loan and they said that it transformed into a recourse loan (as in a refinance). I am looking at short selling the house in California since my once $610,000 house is now worth $410,000. Will I owe the bank the difference between the purchasing and selling prices of the property on the first loan that is now recourse? What about the IRS? This is my first house and I have no money down and I have been paying interest only. Thank you, Quinn
    0 Votes

  • LC
    Oct, 2011
    larry
    i own a home in california. i stripped the second with a chapter 13 bankruptcy. in the event of foreclosure or shortsale, will the line of credit turn the nonrecouse into a recourse loan.
    0 Votes

  • KL
    Oct, 2011
    Kay
    Hi Bill, I hope you can help answer my question... I am current on my first home which is underwater, and have just been approved for a new home loan (without needing the rental income agreement for my first home. What could happen if I shortsale or foreclose on my first home after I buy my second home? I love my first home and thought about renting it out, but my fair is that in about 5 years my monthly mortgage will convert into principle and interest at a high interest rate and I would no longer be able to keep the house then, and I heard that the Debt Forgiveness program where you may not not have to pay taxes on your Shortsale/Foreclosed home is to expired end of 2012... Any advice or suggestions will help. Thanks.
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