Tuesday, April 22, 2008
Are you Liable for a Deficiency Judgment?
Each state has it’s own rules. In the State of California, for Residential Property (1-4 Units), Owner Occupied here’s a quick chart.
| Lender | Seller Financed | Refinanced |
| NO Deficiency Judgment if Senior or junior Lien Holder * see Civil Code 580b. | NO Deficiency Judgment if Senior or junior Lien Holder * see Civil Code 580b. | YES - Deficiency Judgment if judicial foreclosure NO Deficiency Judgment if Trustee Sale Foreclosure |
* If a senior Lienholder forecloses on the property, the wiped out junior loan lienholder who no longer has a secured note may NOT sue on this promissory note for those categories indicated on this chart.
There are other factors and conditions which may change the result (such as borrower fraud).
Always consult a legal professional.
Labels: Mortgage Debt Relief Act, Notice of Default, Short Sale
Listing Agents, and even Private Investors.
Don't work harder - Work Smarter!
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11:58 AM
1 Comments:
This is a question many will be asking when these 80/20 refi's forclose.
In California, how long does the lender have to FILE for a deficiancy judgement. I'm not talking about the statue of limitations to enforce a judgement, which is 4 years in many states... but how long do they have to ask for one. I hear it's three moths in some states, but don't know about Cali.
Also, does the clock start ticking from the time it's forclosed, or in an REO situation does the lender have from the time the property is sold to another buyer?
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