In reviewing California case law, the Appellate Court noted a perceived risk of abuse where a lender holds both senior and junior deeds of trust, and found dispositive the reasoning in Simon v. Superior Court, 4 Cal. App. 4th 63 (1992), which held that a lender holding both the first and second deeds of trust on the same property could not recover on the loan secured by the second trust deed after the non-judicial foreclosure. The Court thus noted that under the reasoning in Simon, the First Lienholder in this case would not have been permitted to obtain a judgment against the Borrower after the non-judicial foreclosure sale of the property.
Ralph T. Wutscher
McGinnis Tessitore Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 551-9320
Fax: (312) 284-4751
Mobile: (312) 493-0874
NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.
Our updates are available on the internet, in searchable format, at: