Expert: Dick Dennis - 1/16/2010

Question
We refinanced our mortgage several times, however, the last time was hard money loan, no cash out.  Oregon doesn't allow deficiency judgment on hard money loans.  So would that mean we can not be held libel for any deficiency?  Since the last refinance was not cash back, fully based on the appraised value of the home at that time?  Even thou earlier refinances were cash outs?

Answer
Deficiency judgments in Oregon are allowed, Steven, but very rarely done. If you were to abandone the house or turn the house into a rental, then yes, they can and most likely would seek a deficiency. Based on the information you gave me, Steve, you don't have too much to worry about. By the way, the word "libel" is used when you insult someone in print. I am sure you meant, "liable." To make sure you are safe, I recommend you consult with a good local real estate attorney. That person should be very knowledgeable with Oregon real estate law. I do wish you well.

Dick Dennis
dixiedee13@aol.com