CA SB1069

Extends anti-deficiency protections to refinanced purchase money loans executed on or after January 1, 2013, preventing lenders from obtaining deficiency judgments except for new principal advances not applied to the original loan or refinancing costs.

Defines new principal advances as amounts not used to pay obligations under the original purchase money loan or refinancing fees, with such advances treated as new purchase money loans subject to deficiency judgment restrictions.

Establishes payment application hierarchy where principal payments are applied first to the original purchase money loan balance, then to new advances, while interest payments are applied to interest due and owing.

Maintains existing protections against deficiency judgments for vendor-financed mortgages and mortgages on dwellings of four families or fewer that were used to finance the property purchase.