After a foreclosure, Can the 2nd mortgage go after my personal assets or business?

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the property is in CA. The original loan was 80/20 100% financing purchase money loan. The creditor is calling that I need to pay them, but I dont have the property anymore. Please help.

  1. Reply
    February 5, 2011 at 6:32 pm

    No, they can only pound sand. We are a trust deed state and the note was secured by the property. As the second, they can only 1099 you their loss. This is assuming that you did not sign a promissory note after the foreclosure or during a short sale.

    Tell them that the property has been foreclosed on and to stop calling you.

    Also, I am not a lawyer. You should seek one for legal advice. I am only a California Licensed Real Estate Broker who specializes in foreclosures.


  2. Reply
    February 5, 2011 at 6:46 pm

    Consult with your attorney in this case. I think the 2ND mortgage holder has every right to expect payment from you since he is the holder of the first mortgage will be paid first from the proceeds of the sale. Any balance would be your debt unless you have also gone into bankruptcy.

    Sounds complicated and you should really consult an attorney.

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