FinanceIntermediateCalifornia Exam

Under California's anti-deficiency statutes, which type of loan is protected from a deficiency judgment after non-judicial foreclosure?

AAny loan secured by commercial real property, consistent with conventional financing terms
BRefinanced loans on owner-occupied residential property, per standard amortization and lending convention
CPurchase money loans used to buy owner-occupied residential property of 1–4 unitsCorrect
DAll loans secured by real property in California, under standard California mortgage lending practice

Why Purchase money loans used to buy owner-occupied residential property of 1–4 units Is Correct

Answer C: Purchase money loans used to buy owner-occupied residential property of 1–4 units

California CCP §580b protects borrowers from deficiency judgments on purchase money loans used to buy owner-occupied 1–4 unit residential properties. Refinance loans and most commercial loans may still be subject to deficiency judgments.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

Key Finance Terms in This Question

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