Deficiency Judgments After Judicial Foreclosures in California. Deficiency judgments are generally allowed after judicial foreclosures in California. But the lender can’t get one if the loan was: used to buy a dwelling that consists of one to four units that’s owner-occupied (called a “purchase money” loan)

Which of the following types of loans issued in California may be protected from a deficiency judgment?

In California, deficiency judgments are only permitted after a Judicial Foreclosure, and only if the anti-deficiency statute does not apply. The clear language of the California statute provides that deficiency is not permitted on purchase money loans.

Can a second mortgage foreclose in California?

The general rule in California real estate law is that first in time equals first in right. By definition, a second mortgage is second in time, and therefore second in right when it comes to foreclosure.

Why does a court issue a deficiency judgment quizlet?

A deficiency judgment is a personal judgment against a borrower for the balance of a debt owed when the security for the loan is not sufficient to pay the debt.

How does a deficiency judgment work in California?

The deficiency judgment allows the lender to collect the debt through regular collection methods, like garnishing wages or levying a bank account. Read on to find out when your lender could get a deficiency judgment against you after a California foreclosure, and what happens to a deficiency in a short sale or a deed in lieu of foreclosure.

How to get a deficiency judgment after a judicial foreclosure?

To get a deficiency judgment after a nonjudicial foreclosure, the lender has to file a lawsuit against the borrower following the foreclosure sale. How Does the Lender Generally Get a Deficiency Judgment After a Judicial Foreclosure?

Can a junior lienholder pursue a deficiency judgment?

Junior lienholders are also prohibited from pursuing a deficiency judgment if they consent to the short sale and received proceeds from the sale as agreed. However, if you perpetrate fraud or commit waste with respect to the property (damage it), the lender can go after you for damages.

Can a short sale result in a deficiency judgment?

The lender agrees to accept this “short” amount in exchange for releasing the mortgage lien. Unless the lender agrees to add a provision to the short sale agreement that states the transaction fully satisfies the mortgage debt, the lender generally retains the right to get a deficiency judgment.