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Single Action Rule and Rentals

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raife99 Joined: 25 Nov 2009 Posts: 1 1.00 Dollars($)	Posted: Wed Nov 25, 2009 1:48 pm    Post subject: Single Action Rule and Rentals Like 0 Dislike 0 I have a few rental properties in CA that Im close to defaulting on the mortgages and property taxes as well. My question is would the single action rule apply in this instance or would the lenders be able to obtain a deficiency judgement against me personnally. Note: each of the rentals were previously my primary residence and the existing mortgages are in existance. Also does single action apply to 2nd Deeds of Trust/HELOC's? Would the bank send me a 1099 for the deficiency?
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Thu Nov 26, 2009 1:35 am    Post subject: Like 0 Dislike 0 Hi raife, California is a single action law state wherein the lender will be able to file only one suit against the borrower. Thus, the lender cannot sue to foreclose and then sue later on to recover the deficient amount. Thus, in your case, the lender will be able to foreclose the rental property but will not be able to sue your for the balance amount. As far as anti deficiency laws are concerned, they are valid in case of primary residence and purchase money mortgage. As your properties are rental, the anti-deficiency laws will not come into effect. _________________ Procrastination is the enemy of your financial success

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