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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My California house was repossessed by Wells Fargo. The property

Resolved Question:

My California house was repossessed by Wells Fargo. The property is now listed as REO & owned by US Bank Na Tr and has a Transfer Value listed.

Am I still liable to Wells Fargo for outstanding debt?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Did you incur the mortgage to purchase the property? Was the foreclosure judicial - through the court?
Customer: replied 7 years ago.
Mortgage was to purchase the property which I lived in as my only residence. Wells Fargo also gave me a 2nd mortgage - Equity Line when purchasing. Later refinanced the Equity Line still with Wells Fargo. Out of the country so not sure whether the foreclosure was through the court but I would assume so.
Expert:  Ellen replied 7 years ago.


Most foreclosures in CA are nonjudicial. If the foreclosure was nonjudicial, a deficiency judgment cannot be entered against you. The lender then would take the property in full satisfaction of the debt.

Here is how it works. In CA deficiency judgments can not be entered for foreclosures by private sale or on purchase money mortgages. Deficiency judgments can be entered on judicial sales of non-purchase money mortgage.

However even in judicial sales regarding non purchase money mortgages the lender will typically not pursue a deficiency judgment as it entitles the defaulting borrower a right to redeem his property if he can pay the necessary charges and cure his arrears.

In summary, deficiency judgments are not usually entered in CA, but in some narrow instances they can be.

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