How the One Action Rule and Anti Deficiency Laws Protect Homeowners
- May 9
- 1 min read
Updated: May 18
Special Episode 1, Short 1
Some states limit what a bank can do after a mortgage default.
Mitchell Sussman explains that the one action rule allows a lender to choose only one path when a borrower stops paying.
The bank can either foreclose on the home or file a lawsuit to collect the debt, but it cannot do both.
WATCH VIDEO:
Mr. Sussman also discusses anti deficiency laws, which go even further in certain states. When specific legal conditions are met, these laws prevent a bank from suing a homeowner for the remaining balance after foreclosure.
These protections can play an important role in how mortgage debt is handled and what options a lender has after a default.
Contact Newport Beach Real Estate Attorneys today -- go to NewportBeachRealEstateAttorney.com or call (800) 233-8521 for a complimentary phone consultation.
Comments