Finance
California's anti-deficiency statutes generally protect borrowers in which foreclosure scenario?
AJudicial foreclosure of a purchase money first mortgage on owner-occupied residential property
BNon-judicial foreclosure (trustee's sale) of a purchase money loan secured by 1-4 unit owner-occupied property✓ Correct
CBoth judicial and non-judicial foreclosure in all cases
DOnly when the loan amount exceeds the conforming loan limit
Explanation
Under CCP §580b and §580d, after a trustee's sale (non-judicial foreclosure), lenders generally cannot pursue a deficiency judgment against the borrower for purchase money loans on 1-4 unit owner-occupied property. This is one of California's strongest borrower protections.
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