Alborzian v. JPMorgan Chase Bank, N.A.

Opinion

HOFFSTADT, J.

A lender that lends money used to purchase a parcel of property and that holds a junior lien on that property cannot sue the borrower personally for the loan balance if the senior lienholder that also contributed to the purchase of the property forecloses on the property but does not collect enough from the foreclosure sale to pay off the junior lienholder. (Code Civ. Proc., former § 580b, as amended by Stats. 1989, ch. 698, § 12, p. 2289.) Can the borrower sue the junior lienholder for trying to collect the no-longer-enforceable debt if the lienholder’s collection efforts…