Black Sky Capital, LLC v. Cobb

**1151 *585 Under California law, a creditor can recover a debt secured by a deed of trust on real property through a nonjudicial foreclosure action to sell the property at a public auction. Code of Civil Procedure section 580d provides that a creditor cannot collect a deficiency judgment-that is, the difference between the amount of indebtedness and the fair market value of the property-if the property is sold for less than the amount of the outstanding debt. (All undesignated statutory citations are to the Code of Civil Procedure.) Here we consider this question: Where a creditor holds two…