![]() ![]() To obtain the deficiency judgment, the lender has to apply to the court within three months of the judicial foreclosure sale and a fair value hearing will be conducted. ![]() the total indebtedness and the foreclosure sale price.the total indebtedness and the fair value of the property or.§ 580b).Īlso, even if the lender has the legal right to a deficiency judgment, the amount of the judgment is limited to the lesser of the difference between: (Fees, costs, or related expenses of the refinance also aren't covered by the anti-deficiency protection.) (Cal. a refinanced purchase money loan that was executed on or after January 1, 2013, except to the extent that new principal was advanced which wasn't applied to the purchase money loan.used to buy a dwelling that consists of one to four units that's owner-occupied (called a "purchase money" loan).But the lender can't get one if the loan was: Deficiency Judgments and Judicial Foreclosures in Californiaĭeficiency judgments are generally allowed in judicial foreclosures in California. But if you have a second mortgage, you might face a lawsuit from that lender depending on the circumstances. § 580d).īecause almost all residential foreclosures in California are nonjudicial, most borrowers won't face a deficiency judgment after the foreclosure. In California, deficiency judgments aren't allowed following nonjudicial foreclosures. Deficiency Judgments After Nonjudicial Foreclosures in California Deficiency Judgments After Foreclosures in CaliforniaĬalifornia foreclosures are typically nonjudicial, but judicial foreclosures are also allowed. The deficiency judgment allows the lender to collect the debt through regular collection methods, like garnishing wages or levying a bank account.Īgain, though, most people in California won't face a deficiency judgment after a foreclosure sale. In some limited circumstances, though, if the property sells for less than you owe the lender, you just might get stuck with a hefty bill in the form of a deficiency judgment.Ī " deficiency judgment" is a money judgment for the difference between the foreclosure sale price and the total mortgage debt. If you lose your home to foreclosure in California, your liability for the mortgage debt will probably end when the lender sells your property to a new owner at a foreclosure sale. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. You should not send any sensitive or confidential information through this site. Your number will be held in accordance with our Privacy Policy. You will receive up to 2 messages per week from Martindale-Nolo. Attorneys have the option, but are not required, to send text messages to you. You are not required to provide consent as a condition of service. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms.
0 Comments
Leave a Reply. |