Legal Question in Real Estate Law in California

Re: Foreclosure and abandoned property

In a nutshell, the lender cannot go after you legally for any deficiencies after the foreclosure/trustee sale. You would not be personally liable here, as the home is the only thing the lender can lawfully "take" from you upon foreclosure. You may have further options rather than face foreclosure at this time as well. If you would like a free phone consultation on your various options here, contact our Law Office directly.

Re: Foreclosure and abandoned property

I agree with Mr. Torrey except that a lender may be able to pursue you for a deficiency if you have refinanced and/or taken out a second deed of trust. If all you owe on is the deed of trust you used to buy the house, the lender cannot sue you for a deficiency.

Even if you have refinanced or have a non-purchase-money loan, it may be too difficult, awkward or expensive for the lender to pursue a small deficiency.

There are two further exceptions to the "no deficiency judgment" rules. One is that they probably don't protect you from a suit for making a fraudulent loan application, but I'm sure this doesn't apply to you. The other is that you could be sued, in principle at least, for committing what is called "waste" on the property. That means letting the value of the collateral (the house) be eroded by not taking care of things like a leaky roof, or deliberately doing a scorched-earth campaign just before moving, like cutting all the trees on the property and selling the logs as firewood. I'm sure you're not going to do this either!