Costanzo

Appellants in this action, the former owners of a 44-unit apartment complex, appeal from a judgment awarding respondent Delta Costanzo the balance due on 11 promissory notes appellants had issued. Appellants claim respondent was barred from recovering a judgment against them by the antideficiency provisions of Code of Civil Procedure section 580b. We agree and will reverse the decision of the trial court.

Facts and Procedural Background

In 1977 respondent acquired a 44-unit apartment complex located in Union City, consisting of 11 buildings containing 4 units each. At the time of respondent’s acquisition the property was subject to a deed of trust securing a note to Fidelity Savings for approximately $400,000.

In August 1978 respondent sold the property to Mr. and Mrs. Edwin Carter for $1,250,000. She received $350,000 of this amount in cash, with the balance represented by a “wrap-around” or all-inclusive promissory note in the sum of $900,000 which was secured by a second deed of trust.

Subsequently, Mr. and Mrs. Carter partially conveyed the property and, after a series of transactions, title was held by Mr. Carter and another individual, Stephen Miller (hereafter…