???

[quote=Kingside][quote=investor]Putting morality aside, most commercial loans are non-recourse and have been for many years. .[/quote]

?

Most commercial loans, certainly most real estate commercial loans that involve LLCs/Corporate entities, are personally guaranteed by the principal(s). In California, those personal guarantees are very much recourse, even after the lender forecloses non-judicially and credit bids to get a deficiency.

And the lenders do sue on them.[/quote]

“Most” might be a stretch. I’ve rarely seen a true “personal guarantee” on a secured loan. The security is typically the guarantee. Corporations and LLC’s buy (and finance) property all the time and the maker of the note is the entity itself, with either the managing member of the LLC or an appropriate corporate officer signing on behalf of the entity. Less common on smaller properties, but very common on larger properties. I have seen addendums where the signor also signs as an idividual, though that has little bearing in a non-judicial foreclosure.

The only time I have ever seen a claim for a deficiency after a non-judicial foreclosure on commercial property is by a junior lien holder, when the non-judicial foreclosure was by a senior lien holder. I’m unaware of any exemption to California’s one-action rule that applies to commercial property. It might exist. Can you cite that exemption?