| borrowers couldn't pay off the mortgage and were left facing a lifetime of debt. To this day, California remains one of a handful of states that bar lenders from hounding borrowers for the difference if a fha guidelines home loan fetches less in foreclosure than is still owed on the mortgage, what's known as a deficiency. There are some important catches to this little-known rule. Foremost, the protection applies fha guidelines home loan to original mortgages used to buy homes. It doesn't apply to refinanced mortgages, which were an alien concept during the Depression. It also depends on how the lender forecloses. Typically, lenders foreclose by essentially filing paperwork with fha guidelines home loan county recorder and conducting sales weeks later -- evoking images of foreclosure sales conducted on the steps of the county courthouse. If lenders choose this route | ![]() |
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