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Re: Def. judgment geeks pls chime in

November 13, 2011 05:16PM
Quote
Kristine-CA
I have a different reading of 580 than you and some of the other consumer foreclosure advice sites on the internet. The foreclosure on the first did knock off the second lien from title, but it did not eliminate the note. BofA now owns an unsecured promissory note. To my knowledge that note is collect-able. The one-action rule applies to the lender who got back the property. They cannot sue on the def. or on the note because they took the property back as their "one-action". They are finished as their one action was the trustee's sale. But the second still owns a note that you signed, even though it is no longer secured by real property. As for the annoyance of collections, I suggest that you do not speak to them and ignore their mail. If they are going to sue you, you will be served. At that point you can decide to counter sue or file BK or whatever makes sense.

Does anyone here have case law or something I can read that says that the holder of the 2nd has no collection rights on the note after foreclosure on the 1st? Thanks, Kristine

CCP 580b: "No deficiency judgment shall lie in any event after a sale of
real property or an estate for years therein for failure of the
purchaser to complete his or her contract of sale, or under a deed of
trust or mortgage given to the vendor to secure payment of the
balance of the purchase price of that real property or estate for
years therein, or under a deed of trust or mortgage on a dwelling for
not more than four families given to a lender to secure repayment of
a loan which was in fact used to pay all or part of the purchase
price of that dwelling occupied, entirely or in part, by the
purchaser."


CCP 580b is an anti-deficiency statute, and does not depend on the one action rule for its application.

If the borrower is really bent out of shape about an ignorant lender's attempts to aggressively collect on a debt barred by anti-deficiency statutes, he can try to find an attorney who will sue the lender under consumer statutes such as the Federal Fair Debt Collection practices act or California's Rosenthal act. There are consumer attorneys who will be happy to bring those kind of claims.
Subject Author Views Posted

80/20 in ca 580b nightmare won't end

Thamann2000 4378 November 13, 2011 01:16PM

Def. judgment geeks pls chime in

Kristine-CA 2944 November 13, 2011 02:52PM

Re: Def. judgment geeks pls chime in

Kingside 2963 November 13, 2011 05:16PM

Re: Def. judgment geeks pls chime in

Thamann2000 2912 November 13, 2011 05:59PM

Re: Def. judgment geeks pls chime in

Kristine-CA 2882 November 13, 2011 07:22PM

Ok, found it

Kristine-CA 2978 November 13, 2011 07:44PM

Re: 80/20 in ca 580b nightmare won't end

Rick Harmon 3050 November 13, 2011 02:55PM

Re: 80/20 in ca 580b nightmare won't end

Thamann2000 3021 November 13, 2011 03:03PM

Re: 80/20 in ca 580b nightmare won't end

BTI 3057 November 14, 2011 07:50PM

Re: 80/20 in ca 580b nightmare won't end

Kristine-CA 3026 November 14, 2011 09:43PM

I called "the source" and got this reply...

Rick Harmon 3109 November 16, 2011 09:52AM

Re: I called "the source" and got this reply...

Kingside 2997 November 16, 2011 12:02PM



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