Can A 2nd Lien Holder Get A Judgment
I wanted to start this post to get your "working" knowledge on California judgment rules.
In the state of California it appears the 2nd lien holder can request a deficiency judgment in the short sale approval letter only on a loan that was not purchase money. But it seems that if I said no to them in my negotiations, their only way to get the judgment outside of a short sale would be to stop the trustee foreclosure and go into a judicial foreclosure.
CA, Section 580d, it states they cannot get deficiency judgment at a Trustee’s sale (only a judicial foreclosure).
Thanks cjmazur,
Yes you comment makes logical sense but sometimes lenders make requests that do not make sense. Have you ever had a lender ask for one that you were able to negotiate out of?
I have had a lender require a promissory note as a condition of the short sell.
did they require the note be recorded?
I have never had to deal w/ a deficiency judgement.
Sometimes what makes sense to you (because you are biased towards the investor mind-set) does not make apply to the Bank.
The Bank has more than just the subject property to look at. They have investors, wharehouse lines, maybe they are publically traded or Federally Chartered? They could be lacking solid info that you could provide on the initial package to persuade them.