Deficiency Judgments and California Law

Deficiency Judgments and California Law (http://www.car.org/legal/2008articles/deficiency-judgment-chart/)

Residential 1 - 4 units, Owner Intends to Occupy a Unit in the Secured Real Property

Non-owner Occupied or Other Real Property

Lender Purchase Money Loan
(non-recourse loan)

▼

Seller Financed Purchase Money Loan
(non-recourse loan)

▼

Refinance (Non-Purchase Money Loan)
(recourse loan)

▼

Lender Purchase Money Loan
(recourse loan)

▼

Seller Financed Purchase Money Loan
(non-recourse loan)

▼

Refinance (Non-Purchase Money Loan)
(recourse loan)

▼

NO
deficiency judgment if senior or junior lienholder*

Cal. Code Civ. Proc. § 580b

YESdeficiency judgment if judicial foreclosure

NO
deficiency judgment if trustee's sale foreclosure

Cal. Code Civ. Proc. § 580d

NO
deficiency judgment if senior or junior lienholder*

Cal. Code Civ. Proc.
§ 580b

YESdeficiency judgment if judicial foreclosure

NO
deficiency judgment if trustee's sale foreclosure

Cal. Code Civ. Proc. § 580d

* If a senior lienholder forecloses on the property, the "wiped out" junior lienholder who no longer has a secured note may not sue on this promissory note for those categories indicated in the chart.

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