Security for One, Security for All: Lenders Can Waive Deficiency by Making Security “Side Deals” Without Unanimous Borrower Consent
I didn’t plan on starting this blog with a post about a published appeal decision in one of my own cases. But the timing worked out that way.
On Friday, a California Court of Appeal applied anti-deficiency laws (including the One Action Rule of Code of Civil Procedure section 726) to reverse a trial court foreclosure decree. The Court of Appeal’s decision eliminated deficiency liability for a co-borrower where the lender agreed to a private sale of real estate security property without that co-borrower’s consent.
The link to the court’s published decision is here. I’ll give commentary and analysis when the appeal process is over….