Finance
Under California's anti-deficiency laws, which type of loan typically prevents a lender from suing a borrower for a deficiency after foreclosure?
ACommercial loans over $1 million
BPurchase money loans on owner-occupied residential properties (1-4 units)✓ Correct
CAll mortgage loans in California
DOnly FHA-insured loans
Explanation
California's anti-deficiency statutes (Code of Civil Procedure 580b) prohibit lenders from pursuing deficiency judgments after foreclosure on purchase money loans used to acquire owner-occupied residential property (1-4 units). This protects homeowners from owing more than the property's sale proceeds.
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