Legal Question in Real Estate Law in California

lost a house in california due to foreclosure. can they put a judgement on my bank account or my pen sion for lost money? And is there a statue of limitations on this.


Asked on 8/22/11, 10:07 pm

5 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Too bad you didn't stop the foreclosure. Under California law they can't get a "deficiency judgment," at least not on your primary residence.

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Answered on 8/22/11, 10:15 pm
George Shers Law Offices of Georges H. Shers

Without knowing the nature of the indebtness, we can not answer the questions. Please see prior answers to this type of question.

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Answered on 8/23/11, 6:34 am

Both Stone and Shers are wrong, unless the lender foreclosed by going to court for the foreclosure. Assuming by "foreclosure" you mean the normal process where they give notice of default, then a notice of sale and then conduct a trustee's sale of the property, lenders are then precluded from going after you for any lost money on the balance. Once a lender conducts a non-judicial foreclousure, the "one form of action" rule is an absolute bar to any action to collect the balance, unless there has been fraud or some other cause of action is available to the lender other than an action to collect the balance on the debt. It makes no difference whether the property was your residence or the nature of the indebtedness, so long as it was a debt secured by a mortgage on real property.

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Answered on 8/23/11, 2:44 pm
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. McCormick. If the bank foreclosed by having the trustee foreclose by exercising the power of sale, through what is normally called "nonjudicial" foreclosure, the bank is precluded from pursuing you for a deficiency judgment. A deficiency is the difference between what the property sold for at the sale, and the amount of the indebtedness. This is precluded not by the one action rule, but by the anti-deficiency prohibitions of Code of Civil Procedure section 580d.

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Answered on 8/24/11, 7:34 am
Mark Saltzman, MBA, JD Law Offices of Mark E. Saltzman

Mr. Roach is correct in his correction of Mr. McCormick's error.

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Answered on 8/24/11, 9:42 am


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