Foreclosed, now lender wants money, BUT..

[CalJeeper]

What is the name of your state? California

Around 6 years ago, when California's real estate market was down, my wife and I were upside down on our home loan, could not refi, and the lender foreclosed.

Now, we have recieved a call from the lender claiming we owe them $76,000 and demanding payment.

I thought we were protected from this by the Code of Civil Procedure section 580b, which is an anti-deficiency law.

Do we need to get a lawyer, or are they just making threats hoping we will come up with some money?

[HomeGuru]

Originally Posted by CalJeeper

What is the name of your state? California

Around 6 years ago, when California's real estate market was down, my wife and I were upside down on our home loan, could not refi, and the lender foreclosed.

Now, we have recieved a call from the lender claiming we owe them $76,000 and demanding payment.

I thought we were protected from this by the Code of Civil Procedure section 580b, which is an anti-deficiency law.

Do we need to get a lawyer, or are they just making threats hoping we will come up with some money?

**A: I think your'e all mixed up but post the actual cite and we shall see.

[CalJeeper]

California Code of Civil Procedure § 580b provides in pertinent part:

No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust, or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.

[CalJeeper]

So, no one's got anything for me?