US-CaliforniaCan I get a deficiency judgment after foreclosure in California?
Generally, no — California law prohibits deficiency judgments after nonjudicial foreclosure of purchase-money residential mortgages on owner-occupied 1–4 unit properties.
What the Law Says
California has strong anti-deficiency protections that limit when lenders can pursue borrowers for unpaid loan balances after foreclosure.
Under California Code of Civil Procedure § 580b, a deficiency judgment is prohibited after foreclosure on a 'purchase money' loan used to buy residential property with 1 to 4 dwelling units, where the borrower occupies the property as their principal residence.
Section 580d bars deficiency judgments after nonjudicial (trustee’s sale) foreclosures — even for non-purchase-money loans — unless the lender first seeks judicial foreclosure under CCP § 726 (the 'one form of action' rule).
CCP § 726 requires lenders to exhaust the security (i.e., foreclose on the property) before pursuing personal liability — and limits them to only one legal action against the borrower for the debt.
These protections apply automatically; borrowers do not need to assert them affirmatively in most cases.
Statutory TextNo deficiency judgment shall lie against the purchaser of real property subject to a deed of trust or mortgage given to secure payment of the balance of the purchase price of that real property...
— Code of Civil Procedure, s. 580b — Purchase money mortgages
Statutory TextNo judgment shall be rendered for any deficiency upon a note secured solely by a deed of trust or mortgage upon real property... following the exercise of a power of sale in such deed of trust or mortgage.
— Code of Civil Procedure, s. 580d — Deficiency judgments after trustee's sale
Statutory TextThere can be but one form of action for the recovery of any debt or the enforcement of any right secured by mortgage upon real property...
— Code of Civil Procedure, s. 726 — One form of action rule
What Courts Have Said
California courts have consistently upheld and narrowly interpreted the anti-deficiency statutes to protect homeowners.
Held that CCP § 580b applies to all purchase-money loans on 1–4 unit dwellings occupied by the buyer, regardless of loan terms or subsequent refinancing — unless the new loan is truly a separate, non-purchase-money transaction.
Confirmed that CCP § 580d bars deficiency judgments after nonjudicial foreclosure even if the loan was not purchase money — reinforcing that the method of foreclosure (trustee’s sale vs. judicial) triggers the bar.
What to Do
Confirm whether your loan was a purchase-money loan used to buy your owner-occupied 1–4 unit home.
Determine whether the foreclosure was nonjudicial (trustee’s sale) or judicial — only judicial foreclosures *may* allow deficiency claims in limited circumstances.
If sued for a deficiency, raise CCP §§ 580b, 580d, and 726 as affirmative defenses — many courts will dismiss such claims outright.
Consult a California real estate attorney immediately if your lender threatens or files for a deficiency judgment — strict deadlines and procedural rules apply.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.