Financing, 9% of the examination
Anti-deficiency protection
California rules barring a lender from pursuing a borrower for the shortfall after foreclosure in defined circumstances.
Two separate protections operate. A non-judicial trustee's sale forecloses any deficiency claim regardless of loan type. Purchase-money protection bars a deficiency on a loan used to buy an owner-occupied dwelling of one to four units, regardless of the foreclosure method chosen.
See also
See it in a question
One question from Financing, so the term lands in the context the exam uses it in.
California lenders overwhelmingly use a deed of trust rather than a mortgage. What practical difference matters most to a defaulting borrower?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.