California Court: Anti-Deficiency Statute Protects Property Owner in Short Sale Approved by Lender

Section 580b of the California Code of Civil Procedure prohibits a lender from seeking loan deficiency after a foreclosure sale by a trustee. In this case, the property owner entered a short-sale transaction with a third party, and the lender approved the transaction. Held: lender cannot seek deficiency against the property owner.
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.