Deficiency Judgement

Posted by Fred on January 28, 2009 at 15:01:36:

In California, can a lienholder of a secured 2nd DOT note obtain a deficiency judgement without first foreclosing on the secured property?
E.g. A 2nd position lienholder believes that there is no equity in the secured property to cover his note. He doesn't want to foreclose because he would be faced with a large payment to the 1st lienholder and isn't sure that he can sell the property to cover the 1st, much less the 2nd. However he sees that the borrower has other assets that have equity. Can he ignore the DOT, sue on the note and go after the other assets via a judgement?

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