Legal Question in Real Estate Law in California

Re: foreclosure

If the lender forecloses using the power of private

sale allowed in the trust deed, the lender is

normally precluded from then litigating against

you for any deficiency.

Normally, the only way a lender can recover a

deficiency judgment is to pursue a judicial

foreclosure, i.e., filing a civil complaint in

court requesting a judgment foreclosing the trust

deed and ordering a sale of the property.

There are some limited exceptions to the rule, and

any number of factors that need to be considered; e.g.,

is the loan and trust deed a purchase-money obligation,

what property is involved, etc., etc.

Best of luck, feel free to keep me posted on your

situation.

The foregoing information is provided as an

accomodation only, and can not be considered

specific legal advice based on a comprehensive

review of available and relevant documents and

facts related to the question you have posed.

Further, provision of the foregoing information

may not be construed to create an attorney-client

relationship.