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Deficiency judgments can only be granted when:

Correct Answer

A) a property has been judicially foreclosed.

In California, deficiency judgments are generally only available through judicial foreclosure.

Answer Options
A
a property has been judicially foreclosed.
B
the value of the property equals or exceeds the underlying balance due on the loan.
C
the mortgage is classified as a purchase-money mortgage.
D
b. the value of the property equals or exceeds the underlying balance due on the loan. c. the mortgage is classified as a purchase-money mortgage. d. a property has been foreclosed under a trustee’s sale.
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Related Topics & Key Terms

Related Topics:

foreclosure-processeslender-rightsborrower-protections

Key Terms:

deficiency judgmentjudicial foreclosuretrustee's saleanti-deficiency statutesCCP 580b

Related Concepts

Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.

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