84. If I don’t file bankruptcy, am I liable for any deficiency on the new loan that I obtained when I refinanced my home?

Even if you refinance your original loan and thereby lose your purchase money protection, most lenders in the residential real estate market choose to utilize the private power of a trustee’s sale to satisfy their unpaid loans, as it is quicker and its procedures are less burdensome. Once the lender conducts a private trustee sale, you will again gain the benefit of Cal. Code Civ. Proc. §§ 580d. Technically, if you refinance your mortgage; your lender has the option of seeking a judicial foreclosure and thereafter obtaining a deficiency judgment against you, so you would have some exposure if you refinanced you mortgage. However, as stated above, judicial foreclosures are rare in California and are not typically cost effective. So, barring any exceptional circumstances, your lender will most likely conduct a private sale, thereby providing you with Cal. Code Civ. Proc. §§ 580d protection.