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.

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 …

Is Oregon a non-recourse state?

Oregon is a “non-recourse” state when it comes to most residential property. “Non-recourse” means the mortgage holder cannot collect a default judgment if the sale does not produce enough proceeds to pay off the entire secured debt.

Can a creditor Sue you for a deficiency judgment?

When a creditor sues you for a deficiency judgment after it has repossessed your car, you might have defenses to that lawsuit or counterclaims that you can make against the creditor for damages of your own. These defenses or claims can reduce or even eliminate the balance of the debt.

Can a creditor collect a deficiency balance after a repossession?

It is common for creditors to make mistakes in the repossession process. Most states bar creditors from collecting a deficiency balance if they fail to comply with notice requirements—such as notifying you of the right to cure or of the sale—or didn’t sell the property in a commercially reasonable manner.

Can a creditor sue if they don’t have a security interest?

Creditors who don’t have a security interest in an item of property can’t take it without a judge or court clerk’s approval. Be aware, however, that the creditor can always sue you in court to recover the money you owe.

Can a car lender Sue you for a deficiency?

If a car lender sues you for a deficiency after repossessing your car, you might have some defenses to the lawsuit. When a creditor sues you for a deficiency judgment after it has repossessed your car, you might have defenses to that lawsuit or counterclaims that you can make against the creditor for damages of your own.

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.

When a creditor sues you for a deficiency judgment after it has repossessed your car, you might have defenses to that lawsuit or counterclaims that you can make against the creditor for damages of your own. These defenses or claims can reduce or even eliminate the balance of the 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.

Is there Statute of limitations on credit card debt in California?

In California, the statute of limitations on a credit card debt is four years (California Code of Civil Procedure § 337), and the statute of limitations on an auto loan or store card (like a Sears or Macy’s card) is four years (California Commercial Code § 2725).