California · ForeclosureCalifornia anti-deficiency rules: no deficiency after a trustee's sale or on purchase money loans

California has two main anti-deficiency rules. After real property is sold by the mortgagee or trustee under a power of sale in the mortgage or deed of trust, no deficiency is owed or collected and no deficiency judgment may be rendered on the note (Code of Civil Procedure §580d(a)). Separately, no deficiency is owed on a deed of trust or mortgage given to the seller for the balance of the purchase price, or on one given to a lender for a loan used to buy a dwelling for not more than four families occupied entirely or partly by the purchaser (§580b(a)). For credit transactions executed on or after January 1, 2013, refinances of such a purchase money loan are covered too, except for new principal advanced beyond the purchase money loan and its costs (§580b(b)). Neither rule affects a guarantor's liability or other collateral pledged for the debt (§§580b(c), 580d(b)).