Is a deficiency judgment an option for a non recourse loan that has been defaulted?

03/23/2009 - Category:Real Property - Foreclosure - State: CA #15732

Full Question:

In the state of Idaho, if a bank makes a non-recourse loan on real property with the property put up as collateral and the property goes into foreclosure, can the bank seek and receive a deficiency judgment?

Answer:

A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or non recourse loan. A non-recourse loan means the buyer cannot be personally held responsible for any deficiency in the loss of a property due to foreclosure or other factor, and the lender generally can't pursue a deficiency judgment.

Please see the information at the following links:

http://definitions.uslegal.com/d/deficiency-judgment/
http://definitions.uslegal.com/f/foreclosure/
http://lawdigest.uslegal.com/real-estate-laws/foreclosure/

Please see the forms at the following link:

http://secure.uslegalforms.com/cgi-bin/forms/query.pl?S-T-CA-B-foreclos

Please see the information at the following link for further discussion:

http://www.searchlightcrusade.net/2007/02/nonrecourse_purchase_money_loa.html

03/23/2009 - Category: Foreclosure - State: CA #15732

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