At Odds Over Junior Lienholder Rights In Calif.

Law360, New York (July 6, 2012, 1:07 PM EDT) -- If your client is a "sold-out junior lienholder" in California, it may make a big difference whether your client also held the senior lien or is an assignee of the holder of the senior lien.

In two recent decisions, the California Court of Appeal for the Second Appellate District and the California Court of Appeal for the Fourth Appellate District have articulated strikingly different interpretations of the rights of junior lienholders to recover deficiency judgments where the junior lienholder also holds the senior lien.

In Bank of America NA v. Mitchell, the California Court of Appeal for the Second District reaffirmed...

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