Can a lender pursue a deficiency judgment if the lender does not recover all that it is due through foreclosure

forclosure question in ca: if you let your investment property foreclose on, is there a possibility that they can come after any other assets and or your primary residence?
Additional information
We are buying a home in Colorado but are losing our investment property in Calif. Can the bank come after our home in Colorado and the equity we have in it?
Answer this question Add to list

Answers (3)

Margery Ellen Golant

Margery Ellen Golant

Contributor Level 8
If the lender does not recover all that is due it through the foreclosure process, most states have laws that authorize it to pursue a deficiency judgment for the remaining sum, and often they are allowed to add their attorneys' fees, collection costs, etc.

I don't practice in your state, this is not intended as legal advice. Please check with someone in your area.
2 4
Piotr Gabriel Reysner

Piotr Gabriel Reysner

Contributor Level 5
Yup, they can sue you for the shortfall and pursue all available legal remedies for enforcing a judgment.
1 6
Christopher L Cauble

Christopher L Cauble

Contributor Level 5
It depends on the manner of forclosure and the state. In California, if the bank pursues a trust deed forclosure non-judicially, then their sole recourse is the property. It is the same as Oregon. In my state, however, they can go Judically and pursue a defiency. However, banks are not doing this very often in Oregon, if at all. So, with due respect to the other posters here, you should see an attorney in your state and get jurisdiction specific advice. A bank CAN choose to pursue alternate remedies besides a non judicial forclosure. Other states have other laws which allow deficiency judgments more often and in more situations.
3 1
Back to Search Results

Ask a Question

Get free answers from real lawyers.

Top Foreclosure Contributors

1.
Royce Brent Bishop
Contributor Level 5
7 answers, 0 legal guides
1.
David Michael Goldman
Contributor Level 7
8 answers, 0 legal guides
3.
Margery Ellen Golant
Contributor Level 8
5 answers, 0 legal guides
View all Foreclosure Lawyers on the Contribution Leaderboard