Quote Originally Posted by c1ue View Post
As noted above, for this one person in NH - the refi turned a non-recourse mortgage into recourse.

Now in this San Francisco Chronicle article - one commenter says the same thing, presumably for California.

Anyone else have firsthand knowledge of this?

If so, this might be an interested class action...
Not sure if you're referencing the issue of recourse or demanding validation of debt.

Deficiency judgments are not available against purchase money deeds of trust in California. They are allowed against non-purchase money transactions which would include refi's, equity loans, etc. In order to obtain a deficiency judgment a lender would have to do a judicial foreclosure which is slow, expensive and has a one year redemption period upon completion. Not a likely path in California except for extreme conditions.

With respect to the validation of debt, under the Fair Debt Collection Practices Act (FDCPA) collection agencies are required to provide proof that they are entitled to collect on the debt. This is no get out of jail free card, they will provide proof and proceed. And since the FDCPA does not really define what constitutes a proper validation of debt it is doubtful that the whole promissory note + chain of title +securitization +MERS clusterf&ck can be called into play here.