Question on second mortgage foreclosure (loan, California, non-recourse, refinance)

[fbradford41]

I hold a 2nd mortgage on a piece of property in Ca. on which I should foreclose but I have been reluctant because I do not know what the lst mortgage holder will do. I do not want to buy the lst mortgage because it is much larger than my 2nd. Any advice?

[Modification Specialist]

In California purchase money loans made to buy your home are non-recourse.

What you are going to do depends on - if your loan's is a purchase money or refinanced loan.

A non-recourse loan is a loan that the bank can only look to their secured interest. In other words, they can only foreclose, they cannot get a deficiency judgment and chase you into bankruptcy collecting it.

However if you refinanced, it transform your loan into a recourse loan. . Then the lender can come after you...

Link - Do you have a 2nd Mortgage? Important Info for California Homeowners!

[Elke Mariotti]

Originally Posted by Modification Specialist

In California purchase money loans made to buy your home are non-recourse.

What you are going to do depends on - if your loan's is a purchase money or refinanced loan.

A non-recourse loan is a loan that the bank can only look to their secured interest. In other words, they can only foreclose, they cannot get a deficiency judgment and chase you into bankruptcy collecting it.

However if you refinanced, it transform your loan into a recourse loan. . Then the lender can come after you...

Link - Do you have a 2nd Mortgage? Important Info for California Homeowners!

I believe you misread the OP's question; if I understood the question correctly, he HOLDS a second, not OWES on a second.