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California Real Estate Law - Is a home equity loan non recourse
Here is a great question I got the other day from an on the ball Realtor.  I have told him I am going to research the case law to pin this question.  I already have my basic answer but if Indymac were coming after me I would not feel too comfortable with out some case law.  I will get to it and report it here as soon as I have time to look it up. 
In the mean time, how would like to make the banks argument and who would like to make the homeower's argument.  And what does a sold out junior have to do to recover?  And, finally what does this case mean if you are attempting to negotiate a short sale in san diego or some other california city?
 
Is Indymac Bank bluffing?
A home buyer got 80/20 purchase money financing for an owner-occupied single family residence in CA (nonrecourse, right?). The 2nd TD was done by Indymac Bank and its terms were written as a HELOC which started its life 100% maxed out with all the purchase money HELOC funds going to the home seller, none to the buyer/HELOC borrower.
Now, 2 years later, a Notice of Default has been ... more

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