Black Sky Capital, LLC, Plaintiff and Appellant v. Michael A. Cobb, Defendants and Respondents.

Summary

The court held that the antideficiency statute does not categorically bar a creditor from recovering on a junior note when the creditor nonjudicially foreclosed under a separate senior deed of trust on the same property. The statutory text applies when the property is sold under the deed of trust securing the note on which the deficiency is sought, and the undisputed facts showed separate loans without intentional loan splitting or other gamesmanship. The court affirmed the Court of Appeal and disapproved contrary decisions to the extent inconsistent with this rule.