- 1 Is California an Anti-deficiency Statute?
- 2 What is deficiency judgment in real estate?
- 3 Can a bank pursue a deficiency judgment in California?
- 4 What happens in the event of a waiver of section 580b?
- 5 Can a foreclosure in California lead to a deficiency?
- 6 Can a deficiency judgment be filed after a short sale in California?
Is California an Anti-deficiency Statute?
A state with one of the most stringent anti-deficiency laws is California. California CCP § 580b(3) states that no deficiency judgment shall lie under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of …
What is deficiency judgment in real estate?
A deficiency judgment is a ruling made by a court against a debtor in default on a secured loan, indicating that the sale of a property to pay back the loan did not cover the outstanding debt in full.
Can a bank pursue a deficiency judgment in California?
In most residential foreclosures in California, the foreclosing bank can’t pursue the homeowner for a deficiency judgment. Please answer a few questions to help us match you with attorneys in your area. By clicking “Submit,” you agree to the Martindale-Nolo Texting Terms.
What happens in the event of a waiver of section 580b?
In the event of waiver, or if the prohibition of Section 580b is applicable, the decree shall so declare and there shall be no judgment for a deficiency.
Can a foreclosure in California lead to a deficiency?
In most residential foreclosures in California, the lender can’t pursue the homeowner for a deficiency. In some states and in certain situations, you might owe your mortgage lender money after a foreclosure sale of your home. This happens when the foreclosure sale doesn’t bring in enough money to pay off your debt.
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.