Is My HELOC A Purchase Money Mortgage?

Have a question about my helocs.  I am doing a shortsell  on both my homes, and they both  have helocs as seconds.  My previous prilmary has a heloc taken out to put a 20% down payment on my current home.  My current also has a heloc. 

Because I used the heloc money to purshased mycurent primary can it be considered for a non-deficiency?  I live in Arizona, a partial non-deficiency state.  I believe I qualify for the first mortgage on both homes to be non-deficient. 

I hope this is clear enough to get an answer, if not let me know.

Jim

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Hello Jim,

Read: Arizona Deficiency Judgment

A HELOC drawn on one home to purchase another unfortunately does not qualify as a purchase money mortgage.  That might not be good news in the event of foreclosure, but you’re negotiating a short sale, so estoppel right there.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.