HELOC or Purchase Loan?

jarden · October 14, 2009, 6:17pm

Is the law on my side, or the banks?

I’m Foreclosing on a home in Arizona which is a Non-Recourse/Anti-Deficiency state.

I have a 2nd loan which they called a HELOC?

I have read that loans taken out at the time of purchase are “Purchase Money Loans,” and therefore they are Non-Recourse and the bank cannot come after you.

This “HELOC” was taken at the time of purchase…I could not have purchased the house without the loan…I did NOT take ANY money OUT at the time of purchase…heck, I didn’t even have equity in the house, so how could they have given me a HELOC!