On home number one, I am guessing that the ARM and HELOC are different loans, the Arm is non-recourse. The HELOC may have also been non-recourse up until you tapped it for something other than the original purchase of home number 1.
If the arm and heloc are the same loan, all home 1 loans are recourse.
Home 2 loans are much the same situation. If property 2 has its own purchase money loan for the 1st plus a new HELOC, both may be non-recourse if the HELOC has not been tapped for any money other than the original purchase.
My recollection is that the negative credit item stays on your credit report for 7 years and 7 days from the date the final disposition is recorded. The final date is months later than the original foreclosure date.
The confusing part of the foreclosure is judicial vs. non-judicial remedy. If the property is foreclosed on in a non-judicial action (the bank just takes the property without a judge as allowed in Ca.) they cannot also try to take anything again in another judicial action.
The confusing part is:
If the property is foreclosed on by the 1st mortgage holder, what remedies does the second (HELOC) holder have. Some say none, some say many. Either way, just because the lender has no legal remedy does not mean the debt on recourse loans disappears. A colleciton agency can still try to collect and mess with your credit for even longer thatn the 7 years.
