Palm v. Schilling

Opinion

CROSBY, J.—

The antideficiency provisions of Code of Civil Procedure section 580b may not be contractually waived as a condition of the encumbrance of real property with a purchase money mortgage or deed of trust or the renegotiation of an obligation, so long as it continues to be secured with the original real estate. The superior court erred in upholding a waiver of the latter variety here. We reverse accordingly.

I

This litigation to collect a deficiency judgment on a secured promissory note had its genesis in John and Caroline Schilling’s October 1980 purchase of James and Frances…