> Wait, what? There are states where I can buy a million dollar house with a loan, and if I default they can only take the house, not the value of the loan?
Yes, and California is one of those states, for purchase-money mortgages on owner occupied properties; and after Jan 1, 2013, also for refinances of purchase-money mortgages on owner occupied properties. Foreclosing the property satisfies the loan, if there's excess from the foreclosure auction, you'll get paid; if there's a deficiency, you'll have taxable income for the amount written off. Word on the street is most California foreclosures go through the non-recourse process (private sale), even for loans that they could sue for deficiency (judicial foreclosure), because the process is quicker and simpler.
Yes, and California is one of those states, for purchase-money mortgages on owner occupied properties; and after Jan 1, 2013, also for refinances of purchase-money mortgages on owner occupied properties. Foreclosing the property satisfies the loan, if there's excess from the foreclosure auction, you'll get paid; if there's a deficiency, you'll have taxable income for the amount written off. Word on the street is most California foreclosures go through the non-recourse process (private sale), even for loans that they could sue for deficiency (judicial foreclosure), because the process is quicker and simpler.