[quote=Eugene][quote=TemekuT]Don’t cry crocodile tears for this “owner”. Property was purchased with zero down in 2005 with 80/20 loans and refinanced in 2006 with closing costs added – piggybacked again with 88/12 loans. Surprisingly no cash was extracted. “Buyer” put nothing into the property and has lost nothing as there is probably a snowball’s chance in hell that the property is worth what was paid for it. [/quote]

Look at it this way. He is now an owner of half an acre of nearly worthless land adjacent to the 15 freeway, and he has $500k of recourse loans on that land.[/quote]

Is it still recourse loan if he didn’t cash out during the refi?