Have a rental property in California purchased i 2006. Lived in it for 5 years before renting it. Refinanced 2 times for lower rate. Also have HELOC that ballooned, I stopped paying, they were not in the money, but kept current on the 1st (also not in the money). First was modified by BofA a few years ago to an interest only. Never used 1st to take out money, etc. Only HELOC and put that money back into upgrading home. Question: In california, is my 1st recourse or non-recourse? Property is rented. No one ever foreclosed or tried to short sale the property because it was underwater on the HELOC. HELOC is not in money yet but may be if prices continue to go up. They have made me an offer to settle 16K on 45k of debt. I was going counter again for 12K. I am concerned in my interest only mod on the priXXXXX XXXXXes the status of recourse vs. non recourse? If I want to walk away in years from now on the 1st, I don't want them to come after me on the 1st for any difference. The second, I will try to negotiate out of it or pay the amount due. They are upside down still on the HELOC. My concern is the 1st and what that means.
Hello and welcome.
My name is XXXXX XXXXX my goal is to provide you with excellent service today. Before I can give you an accurate answer to your question, please provide the following additional information:
When you refinanced the first loan, did you go through the same lender as the original loan, or did you use a different lender?
I look forward to assisting you as soon as I have received this information. Thank you.
Lenders: 1st was etrade, I believe it went through Countrywide, and then refi through BofA...
One more detail, they have put "charge off" on my credit report which now is the same as a "foreclosure" notation which stops me from getting any future home loans for 7 years. I am drafting a letter for a settlement offer to PNC on the HELOC. My first is in the money right now, but with interest rates on the rise again, that could be short lived. There are renters in the property currently and I just signed lease for 2 more years.
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I don't know if you received my reply. It looks as though I am in a "recourse" position. Please explain "one action". Let's say I walked away and the difference on what was owed is 100K. Do they have to foreclose and sue me at the time? Please explain this because it does make a difference on whether I ask the tenants to leave and sell the property asap. I don't want to be on the hook for any of this. THanks.
I am sorry, I had to leave and just returned. To finish up with this, can they put on my credit report a "charge off" with nothing to back it up. There is no foreclosure, no judgment, no documents that they produced to show they could actually do that to me. I stopped paying on the loan because I did not believe the loan was a balloon like they said and I have asked them to produce the the documents and of course they will not. I guess they can just go in even if the information does not get back up with any kind of documents and they can make a notation of whatever they wish. I thought that was against the law but maybe not. Our laws don't seem to care about us anymore. Let me know and I will rate your information. I did not know you don't get paid without it. Sorry it took long. Lynn
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