FAQ's Foreclosures

 

If My Lender Forecloses, Can They Come After Me For The Loss?

 

In order for your lender to recover losses incurred on your mortgage as a result of foreclosure, the lender would need to do a Judicial foreclosure. While, theoretically a lender could pursue a deficiency judgment through a Judicial Foreclosure on some mortgages, it almost never happens in California.

The lender is normally left with the proceeds generated at the Trustee’s Sale or from a sale after acquiring the property at the Trustee’s Sale. This is another reason why lenders would prefer to work with the homeowner to solve the problem and avoid getting the property through foreclosure.