A short sale occurs when a property is sold for less than the amount owed on the mortgage. This usually happens when the home’s market value drops below the remaining loan balance.

A home equity line of credit, or HELOC, is a loan taken after buying a home that lets the homeowner borrow against equity for expenses like cars, credit card debt, or travel.

In California, anti deficiency statutes protect homeowners by limiting a mortgage company’s ability to sue for the remaining loan balance after a foreclosure sale. When a property is sold for less than what is owed, the lender usually cannot pursue the borrower for the difference, known as the deficiency, if certain conditions are met.