i didn''t know this!!!

[movie zombie]

in california, there is an obscure protection with your original mortgage but refinancing cancels it!!!!

"The legal protection in question -- detailed in Section 580b of the California Code of Civil Procedure -- dates to the Great Depression, when the Legislature passed a number of measures to protect Californians losing their homes in foreclosure sales. Because home values were plummeting and few people had money to bid at foreclosure auctions, destitute borrowers couldn''t pay off the mortgage and were left facing a lifetime of debt."

read on: http://www.mercurynews.com/mld/mercurynews/business/12922805.htm


did anyone know about this?

and interesting advice at the end of the article re putting down the least amount and not borrowing from parents.....

peace, movie zombie

 

[Mara]

you have to login to read it?

 

[movie zombie]

its free.....and i'm not allowed to copy the entire text of the article into pricescope. hope you get to read it. i was astounded that this information had not been cited in other articles before now.

here's another quote: "To this day, California remains one of a handful of states that bar lenders from hounding borrowers for the difference if a house fetches less in foreclosure than is still owed on the mortgage, what's known as a deficiency.

There are some important catches to this little-known rule. Foremost, the protection applies only to original mortgages used to buy homes. It doesn't apply to refinanced mortgages, which were an alien concept during the Depression.

It also depends on how the lender forecloses. Typically, lenders foreclose by essentially filing paperwork with the county recorder and conducting sales weeks later -- evoking images of foreclosure sales conducted on the steps of the county courthouse. If lenders choose this route -- and the vast majority do -- they cannot pursue the unpaid portion of the mortgage, regardless of whether it's the original loan or a refinanced loan.

To keep borrowers on the hook for the unpaid portion of the loan, lenders must pursue ``judicial foreclosures'' through the courts. Judgments are good for 10 years but can be renewed."

peace, movie zombie