Is CA a non recourse state?

What Is a Non-Recourse Loan? Home mortgages—though generally recourse—are non-recourse in 12 states: Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah and Washington.

How are spouses liable for spouse’s debts under California law?

Spouses can agree that they won’t have community property, or that only certain property will be community and the balance will be the separate property of the spouses. To be enforceable at law, the agreement needs to be in writing and both spouses should be separately represented by counsel.

Can a California loan be subject to a deficiency judgment?

Hard-money loans in California—loans taken out after the home was purchased through a refinance or second mortgage—can be subject to a deficiency judgment under the following conditions: The lender forecloses under judicial proceedings (California Code Civil.

Who is liable for a deficiency judgment after a foreclosure?

If both spouses sign the mortgage and promissory note, they are jointly responsible for repaying the debt and would be liable for any deficiency judgment following a foreclosure — so long as state law allows lenders to sue borrowers to recover a deficiency.

Can a bank hold you personally liable for a deficiency judgment?

In the event that the mortgage is foreclosed, you can be held personally liable for the loan. The lender can then come after you for a deficiency judgment, as long as state law doesn’t prohibit it. What is a deficiency judgment?

Who is liable for a spouse’s debts in California?

-The separate property of a spouse is not liable for the premarital debts of the other spouse.

Can a junior lienholder file a deficiency judgment in California?

California law generally prohibits a deficiency judgment following the short sale of a residential property with no more than four units. Junior lienholders are also prohibited from pursuing a deficiency judgment if they agree to the short sale and they receive proceeds as agreed. (Cal.

Can a deficiency judgment be filed after a short sale in California?

Deficiency Judgments After Short Sales in California California law generally prohibits a deficiency judgment following the short sale of a residential property with no more than four units. Junior lienholders are also prohibited from pursuing a deficiency judgment if they agree to the short sale and they receive proceeds as agreed.

When is a spouse considered a community liability?

-Liabilities for an injury to person or property caused by one spouse will be considered a community liability if the injury was caused while the spouse was performing an activity for the benefit of the community.