Hesselgesser
Jack Erickson & Associates v. Hesselgesser
Opinion
Opinion
Stone, J.
Robert D. Hesselgesser appeals from a judgment awarding respondent, Jack Erickson and Associates, $112,000 on a promissory note. We affirm and hold that the judgment is not barred by the antideficiency provision of Code of Civil Procedure section 580b.
Facts
On June 15, 1989, appellant and his wife, Jane Hesselgesser, purchased a residence from respondent for $560,000. Appellant put $56,000 down, borrowed $392,000 from Great Western Savings, and gave respondent a $112,000 note secured by a second deed of trust.
Appellant bought the residence for investment purposes and never lived in it. He planned to fix it up and quickly sell it. The promissory note to respondent had a June 15, 1990, due date.
In 1991, appellant decided to rebuild most of the residence and obtained a $300,000 construction loan from Union Bank. The bank required that respondent subordinate the second deed of trust to the construction loan. Respondent, at appellant’s request, signed a subordination agreement and received a written guaranty.
In 1993 appellant defaulted on the Great Western Savings and Union Bank loans. The banks foreclosed. Appellant sold the property a week before the foreclosure but…