When that property sold, the original borrower had a deficiency and I had guaranteed a part of the principal, up to my purchase price.

It may have nothing to do with his workman ship. cost to remove the deficiency?

@Mindy Jensen  non recourse and a 1099 are completely different things.I think what your asking is does this state allow for a deficiency judgment on a purchase money deed of trust or mortgage I think that's your first question or what your trying to figure out.Most states do however west coast state like CA WA OR NV AZ do not if its OWNER OCC and it was purchase money..

They can sue for deficiency judgement but in most cases you cannot get water from a rock.

Don't use a quit claim deed, have the donor use a general warranty deed or a special warranty deed if they need to due to deficiences in the property that are warranted by state law under a general warranty deed.

It reflects a property in which manyof its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.C6The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety,soundness, or structural integrity of the improvements.

What he/she directed you to do is merge your interest into the real property if the deed is taken under the same name as the Mortgagee which then gives priority to the other lien holders.The general notion of a DIL from a borrower is there will be no seeking a deficiency.  

In fact, not listing at market value could subject the bank to a level of uncomfortable scrutiny in an area that may allow deficiencies suits.

Equity amounts do not allow for deficiency judgments and may place the borrower in a position to make calims if excess amounts are receuived from any foreclosure or sale.

As I look through my exam books right now, here are just a few of the topics covered in depth: Conditions of purchase Buyer alternatives-purchase/legal legal aspects/securities law LLC, S;yndication, partnerships, joint ventures, TIC;s/Tenant in common ownership-security/non security Investor participation, breach of contract, buyer's liabilities, Equity purchase transactions, Lease Purchase/Lease Option contract-legal burden of proof, Boundary disputes, easements, enchroachments, Promissory notes, due-on-sale regulations, Converting nonrecourse paper into recourse paper, deficiency in recourse loans, modification of notes, errors in payoff demands, AITD/Wrap mortgages, short payoffs on recourse/nonrecourse.