dead lieu in foreclosure

In Ca, we use the deed of trust (instead of a mortgage) and on the deed of trust, its states power of sale clause. Basically, the lender uses the deed of trust between you, the lender and a trustee. The trustee is given 2 responsibilities, 1 is to convey the title to you when loan is paid in full, and 2 is to foreclose on the property when in default. The lender using the DOT, only takes back the property in collateral. The deed in lieu, you are giving up your right and possession to the property, and the lender will take back the property to satisfy your debt.

hi beanpha,

after the deed in lieu of foreclosure, the lender won't come after you in order to recover the deficient balance. the deficient amount is forgiven by the lender in case of a deed in lieu of foreclosure.

thanks