Supreme Court of California

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Coker v. JPMorgan Chase Bank, 213137

The antideficiency protection of Code of Civil Procedure section 580b, which states that when an individual borrows money from a bank to buy a home and the bank forecloses on the home, the bank can collect proceeds from the foreclosure sale but nothing more, applies not only when a bank initiates a foreclosure sale, but also when a defaulting borrower arranges a short sale, which occurs when the borrower sells the home to a third party for an amount that falls short of the outstanding loan balance, the lender agrees to release its lien on the property to facilitate the sale, and the borrower agrees to give all the proceeds to the lender.

Appellate Information

  • Decided
  • Published 2016/01/21

Judges

  • LIU

Court

  • Supreme Court of California

Counsel