Enloe

When sellers of real estate accept a deed of trust from the purchasers to secure the purchase price, Code of Civil Procedure section 580b prohibits the sellers from obtaining a deficiency judgment in the event the purchasers default. It matters not that such a trust deed is given to sellers after the close of escrow. Timing does not change its character. We affirm the trial court’s summary judgment in favor of purchasers and against the sellers.

FACTS

James and Margaret Enloe owned a single-family residence in Templeton. They agreed to sell it to Casey Lee Kelso and Joseph R. Jaeger (hereafter collectively Kelso) for $1.9 million. The Enloes agreed to carry back a second deed of trust in the amount of $93,750. For reasons not disclosed, Kelso’s lender, Washington Mutual, decided to fund its portion of the purchase price with two loans secured by two deeds of trust. This would make the sellers’ proposed second deed of trust, a third deed of trust.

Washington Mutual refused, however, to fund its loans if there would be a third deed of trust in favor of the sellers. In response to Washington Mutual’s refusal, the Enloes and Kelso agreed that the Enloes would carry back a…