Watch the news to see if one of the two bills in the state legislature passes regarding short sales. They both would preclude a second lien-holder from pursuing a deficiency judgment on a recourse loan if the first lien-holder accepts the sales proceeds in full satisfaction of the debt. Remember that a recourse loan is a second mortgage or home equity loan that was NOT used to purchase the home. Non-recourse liens that have never been refinanced, in other words those original purchase money loans–lenders cannot pursue other assets. Whether these bills will encourage banks to accept short sales or push them faster to foreclosure is anyone’s guess. Welcome to the weird world of real estate today!