Can A Lender Come After A Home Owner For A Deficiency?

The "Anti-Deficiency Law" states that a lender CANNOT go after personal assets if foreclosing on a "purchase money" loan.

There is a big "HOWEVER"...

Foreclosures on "refinanced money", 2nd trust deeds, and mechanics liens are not subject to this law, and can go after personal assets. Lien holders often times use this to threaten and motivate the seller to make payments (Phone calls and letters). Typically, a purchase money lender or a 2nd will propose an unsecured note for less than the amount owed.

Even if it is an original "Purchase Money Loan," 2nd Trust Deeds may still go after personal assets. However, judicial foreclosure to obtain a deficiency judgment is a costly option, takes a long time, and is not often pursued.

The most difficult Short Sale Approval is when the seller voluntarily stops paying without a hardship, the seller walks away, and/or disappears.

Please call 1-800-480-1917 or e-mail any additional questions to ZOOMLossMitigation@gmail.com.

www.ZOOMLossMitigation.com