This all depends on the timing of the loans. If you purchased the house with one loan or with two loans but later refinanced the second, then the second is NOT a purchase money mortgage. The term purchase money mortgage refers specifically to the purchase of the home for which the mortgage lien is placed -- it is not transferrable. It appears, however, that the second loan was taken well after the first and not used to purchase the actual home on which its lien sits.
Under the facts as you state them, you would not be able to escape a deficiency judgment in California. The fact that you own a second property would mean that the holder of the second loan could and likely would place a lien for the deficiency judgment on that second home.
THE LAW OFFICE OF STEPHANIE WHITE
Simi Valley, CA
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