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.
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 provided by the author
The California anti-deficiency statutes apply only under certain limited circumstances. Consult a lawyer regarding your specific situation. DISCLAIMER: This is NOT Legal advice.
Our Rating is calculated using information the lawyer has included on
their profile in addition to the information we collect from state
bar associations and other organizations that license legal
professionals. Attorneys who claim their profiles and provide Avvo
with more information tend to have a higher rating than those who do
What determines Avvo Rating?
Experience & background
Years licensed, work experience, education
Legal community recognition
Peer endorsements, associations, awards
Legal thought leadership
Publications, speaking engagements
This lawyer was disciplined by a state licensing authority in .
Disciplinary information may not be comprehensive, or updated. We recommend that you always check a lawyer's disciplinary status with their respective state bar association before hiring them.