Real Estate Zing
 USA Real Estate  USA Cities  Real Estate Agents List  Fannie Mae  Freddie Mac
 
 Home  »  USA  »  California  » Deficiency Judgment

California Deficiency Judgment

California Deficiency Judgment is one of the consequences of non payment of mortgage and is against borrower or debtor or defendant. This happens because the sale of the foreclosed homes does not generate enough funds that complete the mortgage payment. So it is the difference between the mortgage amount given by the lender and fair price after selling the home during foreclosure. For homeowner, this is the further financial set back after foreclosure auction or sale of the home. But normally the lending institutes do not go after foreclosure deficiency judgment in CA. The foreclosure laws must be checked to know the the details of deficiency judgment and protections available. For this professional foreclosure attorney must also be consulted.

Bank usually avoid deficiency judgment as it leads to further charges in terms of attorney, paperwork, filing a lawsuit and getting the judgment from the court. Bank needs to spend lots of time and money on this. Moreover the mortgage foreclosure happens because the homeowner does not have money to pay, so how the homeowner can pay the amount in deficiency judgment if the orders are against him or her, is the biggest question. On the other hand bank generally thinks that if the court's order will be against it then the whole money will be lost. So the bank, in most of the cases, go for the sale of the home instead of deficiency judgment in California. Moreover if the balance is not much then generally the CA deficiency judgment is avoided.

According to the California deficiency judgment law, in non-judicial foreclosure process, lender is not allowed to go for deficiency judgement filing. So to have foreclosure deficiency judgment one must, from the beginning, have the judicial foreclosure process.

In case borrower has taken FHA or VA home loans that secured then the lender has every right to sue the borrower for foreclosure deficiency judgment. In this case it does not matter whether the process has taken place through judicial or non judicial foreclosure method.

Now, in case the borrower has given the promissory note to the lender then with deed of trust then the loan is termed as "hard money" loan. In this loan cash is taken directly with repayment guarantee in the form of promissory note. Now in this case two things can happen:
  • Lender can sue the borrower on promissory note
  • Lender may follow the judicial foreclosure for the deficiency judgment

A promissory note is a promise made by the borrower to pay back the whole amount and it is on personal liability.

Exemption in CA deficiency judgment

One to four units residential dwelling that has been purchased by the home loans is exempted from deficiency judgment according to California foreclosure deficiency judgment law. Therefore, in order to protect yourself further it is better to get information on deficiency judgment in California before hand so that you do not suffer further. Along with this also check the links given by Realestatezing.com for further reading.
 
Foreclosure Forum
Looking for details on California deficiency judgment, then have a look on this web link that provides the information on foreclosure, deficiency judgment and other terms related to foreclosure in different states of US.
Website:http://www.foreclosureforum.com/articles/0312deficiency.html
 
About.com
On About.com, check information related to foreclosures, promissory notes, short sale, foreclosures and California foreclosure deficiency judgment. Read the detailed article on deficiency judgment.
Website: http://homebuying.about.com/od/foreclosures/f/120908_Def-Judg.htm
 
United States Foreclosure Law
In United States Foreclosure Law check the summary on foreclosure and get the quick facts on California foreclosure process.
Website: http://www.foreclosurelaw.org/California_Foreclosure_Law.htm
 
California Real Estate
Agents Journal Listings Forms News
Association For Sale Principles Real Estate License Board License Classes
License Training Real Estate License Reciprocity License Requirements License Renewal License Online
License Preparation Market Department School Real Estate License
Online Orange County Taxes Practice Education
Exam Foreclosures Jobs Broker Commmission
Appraisers Attorney Law Company Development
Search Cities in California      
 


Section 8
Housing
Fraud
Application
Assistance
Eligibility
Landlord
Laws
Program
Requirements
Waiting List
Foreclosure
Laws
Homes
Listings
Prevention
Process
Rate
Lawyer
Foreclosure Eviction
Consultant Act
Moratorium
Mortgage
Rates
Brokers
Lenders
Companies
Calculator
Broker License
Refinance
Insurance
Advisors
Home Mortgage
Rental Homes
Homes for Rent
Condos for Rent
Residential Property
Condos
Association and Board
Association of Realtors
Housing Authority
Office of Real Estate Appraisers
Top Builders
DR Horton
Pulte Homes
Lennar Homes
Centex Homes
Home Builders
Property Taxes
Unclaimed Property
Property Tax
Building a Home
Architects
Facility Management
Carpet Cleaning