FAQ - WAIVER OF FORECLOSURE FOR SUIT ON NOTE - FORECLOSURE IN CALIFORNIA
WAIVER OF FORECLOSURE FOR SUIT ON
NOTE:
QUESTION: Is there any other way a creditor could claim against a debtor on a trust deed or mortgage?
ANSWER: Yes. In some cases, the creditor can ignore the lien of the debt on the property and sue on the promissory note that was signed with the deed of trust or mortgage in the Court. This is an “action on the debt” and not a “property foreclosure.”
In some cases, a creditor may elect to waive a foreclosure action against the property and simply sue separately on the underlying promissory note by a lawsuit through the Superior Courts. Mortgage and trust deed holders in subordinate title positions behind larger superior liens (where there is little or no equity left to realize upon) will often elect to do this on those loans where direct action is possible and where there are other assets the creditor might seek to realize from with a judgment.