McKendrick

This case raises the novel question of whether the three-month period of limitation, set out in Code of Civil Procedure section 580a, applies to bar an action for a deficiency judgment brought beyond that period by a junior trust deed holder who has purchased the secured property at a foreclosure sale of a more senior trust deed. We hold that it does.

Plaintiff Citrus State Bank (Bank) appeals from a judgment following a nonsuit on its complaint to recover such a deficiency judgment against the defendant William J. McKendrick (McKendrick). Because we conclude that the Bank, as a junior lienholder who purchased the secured real property at a senior foreclosure, (1) is bound by section 580a and (2) failed to bring its action within the required three-month period, we affirm the judgment.

Factual and Procedural Background

On September 29, 1983, the Bank made a loan to McKendrick in the sum of $38,445. Repayment of the loan was secured by a deed of trust executed by McKendrick on a parcel of residential real property located in Temple City, California. This deed of trust was subordinate to four senior trust deeds, three judgment liens and one Employment Development…