Deficiency Judgements

Here's a very interesting article about that might affect anybody considering walking away from their home:

http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/

California is a non recourse state, but if you refinance, or the bank can prove that you've rented your home, you might loose your non recourse status.  Even a loan modification could put you into a "recourse" status.

Beware of banks bearing gifts.  If the bank offers anything short of full payment of a loan, it's because it's in their interest.  You need to protect yourself to make sure you know what they know.

makes sense.. I mean, if you take out a huge equity loan, buy cars, etc.. and then try to walk away from the house, I think one should be liable for those monies..

What if I refinanced but didn't cash out, do I still qualify for non-recourse?