Press Release

DEFICIENCY JUDGMENTS IN CALIFORNIA

By Sahaar Ann Azariah, Esq. of STONE HAVEN LAW GROUP, LLC

Rancho Cucamonga, California, July 26, 2009- Can the mortgage lender come after the borrower for any money owed once the principal residence has been foreclosed on? In California, the answer to this question is somewhat complex and it is recommended to seek the advice of an attorney proficient in this area of law. Generally speaking, California has what are called antideficiency statutes which place limits on a lender’s right to pursue deficiency judgments in certain situations.

Deficiency Judgment: A deficiency judgment is when a bank obtains a court ordered judgment to collect money that is still owed to them.

Judicial Foreclosure Sale: If a bank wants a deficiency judgment in order to collect the remainder of the amount owed to them after a foreclosure sale, they can only do so in California after a judicial (court ordered) foreclosure.  However, judicial foreclosures are very rare in California.

Non-Judicial (Power of Sale) Foreclosure: If foreclosure occurs in California non-judicially, then any purchase money mortgage is not subject to a deficiency judgment.  So the bank who gave original loan for the purchase of primary residence can not obtain a deficiency judgment against the borrower after a power of sale. But, the lender which has a second mortgage on the property does have the right to pursue a deficiency judgment against the borrower which is subject to certain limitations. 

Limits are placed on deficiency judgments within California in certain situations based on what are called antideficiency statutes. In such a case an attorney should be consulted and the implications of a possible deficiency judgment against the borrower in light of the particular circumstances should be considered upon. Additional insights on foreclosure defense, loan modifications and certain other issues are attainable only at http://www.stonehavenlaw.com.

1. 20th Jan 09

2. 22nd Dec 09

3. 4th Dec 09

4. 17th Nov 09

5. 18th Sept 09

6. 3rd August 09

7. 26th July 09

8. 20th July 09

9. 13th July 09

10. 6th July 09

11. 1st July 09

12 . 22nd June 09