This deficiency judgment prohibition applies to a broad category of 1 to 4 residential units with exceptions noted below. It applies to:
•Cash-Out Refinanced loans
•Non-Owner Occupied Homes
Are There Exceptions to C.C.P. section 580e? (SB 458):
Section 580e does not apply in the following circumstances:
- Where debtor is a corporation, limited liability company, limited partnership, or political subdivision of the state. C.C.P. 580e( d)(1).
- Where debtor engages in fraud in the sale or waste of the property C.C.P. 580e( c).
- A lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property. C.C.P. 580e(d)(2).
- For other exceptions that may apply to your specific factual scenario, speak to a lawyer.