California Anti-Deficiency Statues CCP 580a to 580d

Ann Nhieu Thi Nguyen

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Bankruptcy Attorney

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Posted over 4 years ago. 4 helpful votes

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1

California Code of Civil Procedure Section 580(b) Applies To

Was the loan incurred in order to purchase real property as a residence ( 1-4 units) for the debtor AND the property was used to secure the purchase loan? Section 580(b) applies which states that "No deficiency judgment shall lie." If you have re-financed, this may impair your ability to use the anti deficiency statute.

2

California Code of Civil Procedure Section 580(b) DOES NOT Apply To

Vacation homes, equity lines of credit (HELOC), investment property (not debtor's residence), property with more than 4 unites. Therefore, if anti-deficiency statues DO apply, there may still be an issue of the equity line of credit (the second mortgage that you took out for a vacation, purchase another home, etc.). If you do decide to do a short sale, loan modification, or deed in lieu, consult a tax attorney about the tax consequences, especially regarding the cancellation of debt.

Additional Resources

The California anti-deficiency statutes apply only under certain limited circumstances. Consult a lawyer regarding your specific situation. DISCLAIMER: This is NOT Legal advice.

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