Post Foreclosure: 2nd lien used for home improvement...can they collect?

[sgarlands]

What is the name of your state (only U.S. law)? Hawaii

Hello,

My wife, mother and I walked away from our primary residence house in Hawaii. House foreclosed and non purchase money 2nd ($13,000) has gone to collections.

I can swear I read somewhere that if you can prove that the money was used for home improvement (in our case landscaping and hardscaping), they cannot collect.

Looking forward to your responses.

Best regards,

S

 

[FlyingRon]

Hawaii law appears not to care if it is purchase money or why the loan was taken out.
The key question is when was the loan taken out and what sort of foreclosure (judicial or non-judicial) was it.

 

[sgarlands]

Hawaii law appears not to care if it is purchase money or why the loan was taken out.
The key question is when was the loan taken out and what sort of foreclosure (judicial or non-judicial) was it.

Thanks for the reply Ron. Foreclosure was Judicial and the loan was taken out when we refinanced after a year of ownership is 2007.

As I mentioned, we used the loan to landscape the house and have proof it that helps.

 

[FlyingRon]

Thanks for the reply Ron. Foreclosure was Judicial and the loan was taken out when we refinanced after a year of ownership is 2007.

As I mentioned, we used the loan to landscape the house and have proof it that helps.

Looks like deficiency can be pursued then.