Posted by JPiper on May 06, 1999 at 19:23:01:
Finally had a few moments…took out my trusty “Smart Trust Deed Investment in California” by George Coats. Good book by the way.
Turns out I wasn’t exactly right in what I said…nor were you. But I’m more concerned about my mistake than yours.
Here’s what Coats says: “All purchase-money TD’s which are seller financings are forbidden collection of deficiency…” Further he says “With the exception of certain federally guaranteed loans, all third party purchase money lenders are also prohibited deficiency judgments–if the loan is secured by four or fewer residential units, one of which is occupied by the borrower. Subject to the aforementioned one action rule, all other third party lenders are free to pursue judicially the borrower’s assets for security deficiencies.”
Again, this is just in California.