Old second question

[jmac]

My case worker told me on a 2nd in california they can go after you...

[Pandora]

well yes, they can because you were still legally obligated to the note.

There are a few questions here I think; 1. how did the 1st manage to sell the house to another bank, then that bank inturn, sell it to a private party - with the junior lien still being attached? Thats first and foremost. The 2nd didnt have to foreclose - but the lien would've had to be extinguished I think for the property to transfer as it did.

Second - is how was that accomplished without you being notified until after the fact? Was the house just sold recently? What was the timeframe on the time from foreclosure (did you get notified of that originally) to the time you just received notification that they (the 2nd) were coming after you for the deficiency?

I found this info as well for you -

The second mortgage sue foreclosure issue. If the second mortgage holder does not foreclose, they can come after you later. They do so under a complaint in court called breach of contract. This would be very easy to prove and relatively inexpensive. And they can get a judgment against you for the amount of the loan and everything else, costs of foreclosure and court costs and attorney's fees because that is what you agreed to when you signed the note.

Now - from what I understand, the Mortgage Forgiveness Act applies to 1st mortgages only - but, I'd want to know how that applies given the house was resold for MORE than what it foreclosed for - some of that should have went to the 2nd mortgage, but then again, maybe not.... I dont know. This is something you need to ask your attorney or better yet, a contracts law attorney.

Either way this 2nd is unsecured.

[jmac]

Thanks....

[LadyInTheRed]

My case worker told me on a 2nd in california they can go after you...

Since your 2nd is not a purchase money loan that is true for your loan. But for others who may come across this, in California, if the loan was taken at the time of purchase and used for the purchase, it is a purchase money loan and the borrower is not liable for any deficiency after a sale. It doesn't matter whether it's a 1st or 2nd (or even 3rd if that ever happens at purchase). Something to keep in mind when refinancing!

[jmac]

I hate bad news lol.