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.
The rules are layered. A completed nonjudicial trustee's sale generally bars a deficiency. Separate purchase-money protections cover qualifying acquisition debt, including specified owner-occupied one-to-four-unit loans, and seller carryback financing has its own protection. Identify the property, loan purpose, lender, and foreclosure method before choosing an answer.
See also
Test the distinction
A relevant question from Financing, selected because its facts or explanation use this concept.
What does a lender give up by choosing a trustee's sale over judicial foreclosure?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.