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Judicial Treatment Of California’S Anti-Deficiency Legislation Section 580b: Is It Effective?, Cole F. Morgan

The Journal of Business, Entrepreneurship & the Law

Short sales of real property represent approximately a quarter of all homeowner transactions. Recently, short sales passed foreclosures as the preferred method in home sales due to the ease of sale. Coker v. JP Morgan Chase Bank, N.A., has ruled lenders of a purchase-money mortgage may not pursue a deficiency judgment after the short sale of a home. Essentially, this means after the sale is completed and the lender has obtained the proceeds from the sale, if there is a deficiency, they may not personally hold the borrower liable for the remaining debt of the mortgage. The ruling was established …