—There are also some further limitations under California law on whether a lender can get a deficiency when foreclosing on a home mortgage. Specifically, Cal. Code of Civil Procedure Section 580b provides that no deficiency judgment is allowed under a deed of trust or mortgage given to the seller to secure payment of the
balance of the purchase price of that real property, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the
purchaser. Note that if a 1 – 4 family dwelling has been refinanced, however, then a deficiency judgment may be sought.—Wow things can really get complicated fast when one has a cosigner and a second mortgage,I don’t have either although I’ve been a cosigner in the past. Didn’t realize all the implications of it at the time,but everything turned out good as the original borrower(my brother)refinanced.Very informative site briansd1.
