Bloxham

Roger W. Bloxham appeals a deficiency judgment in favor of Walter E. Heller Western, Inc., a junior lienor, following Heller’s acquisition of Bloxham’s real property at the senior lienor’s nonjudicial foreclosure sale. Bloxham contends Heller’s deficiency judgment should be barred by Code of Civil Procedure section 580d or limited by section 580a.

Walter E. Heller Western, Inc. (Heller) made a series of loans to Roger W. Bloxham which were consolidated into a promissory note for $288,000 and secured by trust deeds on lots owned by Bloxham. These trust deeds were later subordinated to a $75,000 first mortgage to Newport Equity Fund Trust 291. Bloxham defaulted on both obligations, and Newport Equity’s trustee foreclosed through a nonjudicial sale. At that sale, the property was purchased by Heller’s attorneys with funds supplied by Heller for a price allegedly well below its fair market value. Although the deed was origi nally in the name of the law firm, the property was subsequently conveyed to Heller.

Heller then brought a deficiency action against Bloxham for the full value of the $288,000 promissory note plus interest. The court granted judgment for Heller, finding…