Comments for Law Offices of David C. Winton +

Comment on IRS Answers Some Questions on The 2008 Mortgage Forgiveness Debt Relief Act and Debt Cancellation by Yet more on IRS Form 1099-A: FAQ

Yet more on IRS Form 1099-A: FAQ — Tue, 18 Oct 2011 06:01:50 +0000

[...] If the cancelled debt was incurred to purchase, construct or substantially improve your principal residence. This is the result of the Mortgage Debt Relief Act of [...]

Comment on California Mortgage Deficiencies: What is a Purchase Money Security Interest? by More California “short sale” developments…And new anti-deficiency protections against unscrupulous banks | Law Offices of David C. Winton +

Mon, 17 Oct 2011 06:00:38 +0000

[...] “Second Mortgages in California: Deficiencies Not Usually an Issue” and “California Mortgage Deficiencies: What is a Purchase Money Security Interest?” I won’t reprise that here. But these posts remain the most visited pages on this website, so [...]

Comment on California anti-deficiency rules redux: California’s new anti-deficiency component, CCP §580e, protects short sellers on first mortgages by More California “short sale” developments…And new anti-deficiency protections against unscrupulous banks | Law Offices of David C. Winton +

Sun, 16 Oct 2011 22:40:59 +0000

[...] Then effective in January of this year, the California State Legislature passed some new anti-deficiency legislation prohibiting first mortgage lenders who have approved a short sale from pursuing any deficiency on [...]

Comment on Rethinking Short Sales? Maybe. But only sometimes and not without legal advice first… by More California “short sale” developments… | Law Offices of David C. Winton +

Sun, 16 Oct 2011 22:38:47 +0000

[...] Sales Worth the Hassle” and softening my position a bit in my post last December called “Rethinking Short Sales…” Then effective in January of this year, the California State Legislature passed some new [...]

Comment on Second Mortgages in California: Deficiencies Not Usually an Issue by David C. Winton

David C. Winton — Wed, 27 Jul 2011 20:00:46 +0000

If California law applies, the nature of the repayment obligation and any cute language that the lender inserts into the Promissory Note won’t affect your anti-deficiency protections. If it could, then any lender could simply insert any language into their forms and end run the statute. It’s sort of like saying that “despite any law to the contrary, if I want to steal from you I can.”

Comment on Second Mortgages in California: Deficiencies Not Usually an Issue by tlease

tlease — Wed, 20 Jul 2011 20:25:12 +0000

My second (loan, not line of credit, made for the purchase of the house) is structured so that there is a balloon payment at the end of 15 years. The notice about the balloon payments says, “you will therefore be required to make payment out of other assets that you may own” or refinance. Would that language allow the lender to seek a deficiency?

Comment on Rethinking Short Sales? Maybe. But only sometimes and not without legal advice first… by David C. Winton

David C. Winton — Tue, 28 Jun 2011 23:49:36 +0000

I’m sorry Tori, but I can’t answer that without reviewing the actual contract.

Comment on Second Mortgages in California: Deficiencies Not Usually an Issue by David C. Winton

David C. Winton — Tue, 28 Jun 2011 23:48:51 +0000

Hard to say with the info you’ve provided. A non-purchase money HELOC in California is usually a recourse obligation, which means that the lender can seek a deficiency, but if the sold out junior was a purchase money loan, then they can’t.

Comment on California Mortgage Deficiencies (Part 1): What’s a Deficiency Anyhow? by David C. Winton

David C. Winton — Tue, 28 Jun 2011 23:43:57 +0000

I can’t answer that with the info you’ve provided. A non-purchase money HELOC in California is usually a recourse obligation, which means that the lender can seek a deficiency.

Comment on The California State Legislature is Seeking to Extend the Already Generous Protections of the Anti-Deficiency Laws: Hooray for Homeowners? No. Just more legislative smoke and mirrors. by David C. Winton

David C. Winton — Tue, 28 Jun 2011 23:42:43 +0000

A release of the lien does not discharge the obligation. You HAVE to make sure that the short sale approval letter includes an express release. The good news is that these unsecured “sold out juniors” are usually sold to debt collectors for pennies on the dollar, and can often be settled pretty cheaply if there is a credible bankruptcy threat.