The Demise Of Deficiency Judgments In Residential Loans

Law360, New York (December 3, 2013, 8:04 PM EST) -- Among the many changes in the financial services industry, two important events occurred this year that effectively signaled the extinction of deficiency judgments in loans secured by residential property.

First, on July 11, 2013, California Gov. Jerry Brown signed Senate Bill 426 into law. Senate Bill 426 expanded the anti-deficiency statutes to provide that "no deficiency judgment shall be owed or collected" in the context of a loan secured by residential property.

The new language replaces the old language, "no deficiency judgment shall lie," to clarify...
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