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Non-Bankruptcy Question> > >
Robert:
Still not my question. Assume NO foreclosure, NO bankruptcy.
How much does the borrower have to pay to pay off the loan in full?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Robert
Sent: Wednesday, June 09, 2010 7:00 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Non-Bankruptcy Question
Ah, I was way off. Well assuming there was a foreclosure I provide an
equally well intentioned but probably doubly confused second try:
CCP Section 726, commonly known as the "one-action rule," restricts the
remedies available to lenders. CCP Section 726(a) provides that, "There can
be but one form of action for the recovery of any debt or the enforcement of
any right secured by a mortgage upon real property" Moreover, CCP Section
726 requires the lender to first look to the sale of the collateral security
for satisfaction of its debt and prevents the lender from bringing more than
one action against the debtor. Therefore, if the creditor prevails on its
lawsuit for foreclosure, the court will direct the sale of the encumbered
property and the application of the proceeds to payment of the creditor's
costs and indebtedness. If the proceeds from the sale fail to satisfy the
costs of the foreclosure and indebtedness, the creditor can apply within
three months following the sale for a deficiency judgment. Upon such
application, and establishment of a deficiency, the court will render a
money judgment against the debtor for the amount of the deficiency. See CCP
Section 580a.
Other instances not involving foreclosure are at:
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