Unequivocally, proceeds from a refinance loan are not purchase money. Lenders of purchase money are required to disclose the non-recourse nature of a loan in California. Refinance lenders are not required to inform you that refinancing forfeits your protection under Civil Code section 580b. Here is a link to a law professor's article calling for a correction to this problem. Note in the conclusion that the least likely to succeed solution is to extend 580b protection to borrowers who refinanced. http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=george_kuney
