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  1. #1

    Question One Action Law

    Here is my question. How does the One Action Law affect a second morgage?

  2. #2
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    Default Re: One Action Law

    You mean if the primary mortgage lender forecloses, and the second mortgage is from a different lender? It doesn't.

    If you have a different fact scenario in mind, don't make us guess.

  3. #3

    Default Re: One Action Law

    Does the one action law come into play when one company owns both loans? Could someone explain how the one action law works in Layman's terms? Thanks

    I hope I'm not making anyone guess now.

  4. #4

    Default Re: One Action Law

    Quote Quoting desperateincalifornia
    View Post
    Does the one action law come into play when one company owns both loans? Could someone explain how the one action law works in Layman's terms? Thanks

    I hope I'm not making anyone guess now.
    I'm not an expert, but am a California resident and the following is my opinion...

    The One Action Rule does not protect you here. If your first and second lien holder is the same bank/lender, and if the senior loan forecloses on the property and "sells out the junior lienor", then the junior cannot seek a deficiency judgement because their own action caused the loss of security for the junior loan. There is case law that that supports this, which you can probably google: George V. Simon et al vs. Bank of America. No. A053038

    The One Action Rule (CCP 726) just basically says that the lender has an election of remedies and must elect a single action, generally exhausting any collateral pledged, before they can seek a money judgement. If they do something like freeze and take money from your bank account first, then they will lose their lein to your property.

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