California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.
