A California real estate instructor is teaching about anti-deficiency protections. All of the following scenarios would prevent the lender from obtaining a deficiency judgment in California EXCEPT:
Correct Answer
B) A non-purchase money deed of trust foreclosed judicially on a rental property
This is the EXCEPTION — the lender CAN obtain a deficiency judgment. A non-purchase money loan foreclosed judicially is not protected by CCP §580b (purchase money) or §580d (trustee's sale). Judicial foreclosure allows deficiency judgments on non-purchase money loans.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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