No Anti-Deficiency Protection Without Starting Construction of a Structure on a Vacant Lot

  Last week the Court of Appeals in the Wildwood decision, 1 CA – CV 12-0728, ruled that the borrower was liable for a deficiency after foreclosure on a vacant lot.  The Court of Appeals rejected the borrower’s argument that the intent to build a home on the vacant lot would qualify the borrower for anti-deficiency protection.  The Court of Appeals said that the “plain language” of the “dwelling” provision in the anti-deficiency statutes required at least the beginning of construction of a “structure” intended to be used for a home.