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Q.Why would a lender opt to use judicial foreclosure if it takes three times as long and costs more?
A.In California, a deficiency judgment is precluded if: (1) the lender forecloses by private sale or (2) the underlying loan was used exclusively to acquire a residential property used as the borrower's primary residence. Therefore, a lender will only opt to use the judicial foreclosure process if the underlying loan allows for a deficiency judgment. A deficiency judgment is a personal judgment against the borrower for the outstanding amount owed on the loan after the foreclosure sale.
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