The Security for Your Second Deed of Trust Has Been Eliminated- Now What? Sometimes when lenders loan money secured by a junior deed of trust on real property, the security is lost. Usually, this happens when the holder of a senior deed of trust forecloses on the property and the junior second deed of trust chose not to advance funds and take the property back. When the holder of a senior deed of trust foreclosures, the remaining lender becomes a "sold-out junior lienor." A "sold-out junior lienor" is rendered unsecured by sale of the collateral. But, the sold-out junior lienor may be able to obtain a deficiency judgment against the borrowers. The procedure is essentially the same as obtaining a deficiency judgment on an automobile loan. The "anti-deficiency" provisions of California law provides protection against judgments for real property borrowers in two (2) circumstances. 1. A lender may not obtain a deficiency judgment against a borrower if the loan was a purchase money loan for the real property and; 2. A lender may not obtain a deficiency judgment against a borrower if the lender forecloses non-judicially. If the lender had his trustee process a non-judicial foreclosure sale under your deed of trust, then the lender will not be able to obtain a deficiency judgment. Because the lender chose to take the property back without a lawsuit, the borrower is protected by the anti-deficiency statutes. However, even when borrowers have anti-deficiency protection, all is not lost. Winn and Sims may be able to help the "sold-out junior lienor" collect on money owed. In situations where the loan was not a purchase money loan and the lender did not foreclose non-judicially, you have a right to sue on the unsecured note. Winn and Sims continues to be successful in obtaining judgments for sold-out junior lienors and collecting on thesejudgments.

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THIS IS AN ATTEMPT TO COLLECT A DEBT; ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.