Deficiency Judgements in California

Rancho Cucamonga, California (PressExposure) July 31, 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

About Stone Haven Law Group, LLC

The Stone Haven Law Group, LLC, a law firm, aims to provide with fair legal opinion on the rights of the lender to pursue deficiency judgments where the lender has certain limitations as per the antideficiency statutes in California.

Press Release Source: http://PressExposure.com/PR/Stone_Haven_Law_Group,_LLC.html

Press Release Submitted On: July 30, 2009 at 6:29 am
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