The one action rule under california real estate law and "pre" sold out seconds

Please note the final paragraph of this link which will of interest to homeowners.
You should speak with an attorney if you lender is trying to proceed against you personally while the property is still secured.

We have successfully used this law to force unreasonable seconds to agree to a short pays.

They have a choice negotiate in good faith or sit there with a non performing loan on their books.

Please make sure you understand - if you let the first foreclose a refinanced second may not be blocked by the one action rule.

Before you begin your workout - you should speak with a real estate attorney.


One Action Rule Does Not Preclude Foreclosure Where Lender Amends Complaint Seeking Other Relief Before Trial

In summary, this district court requires that an action, or an event analogous to an action, occur before the doctrine can be invoked. The court explains the application of the sanction effect of the loss of security based on an election of remedies that occurs either through res judicata or through estoppel. To lender clients, this means that you must include a judicial foreclosure action in your lawsuit whenever seeking to enforce claims against borrowers where your debt is secured by real property. You also must make sure that you do not go to judgment before you include that claim. If your lawsuit does not include a foreclosure cause of action, you must amend that cause of action before going to judgment. In addition, you must be sure you do not take any action that can be deemed an election of your remedy to pursue a personal judgment rather than seeking to enforce the security. If you do, the doctrine and its intended sanction effect can be invoked to potentially cause a loss of the security.