Whenever a money judgment is sought for the balance due upon an obligation for the payment of which a deed of trust or mortgage with power of sale upon real property or any interest therein was given as security, following the exercise of the power of sale in such deed of trust or mortgage, the plaintiff shall set forth in his or her complaint the entire amount of the indebtedness which was secured by the deed of trust or mortgage at the time of sale, the amount for which the real property or interest therein was sold and the fair market value thereof at the date of sale and the date of that sale. Upon the application of either party made at least 10 days before the time of trial the court shall, and upon its own motion the court at any time may, appoint one of the probate referees provided for by law to appraise the property or the interest therein sold as of the time of sale. The referee shall file his or her appraisal with the clerk and that appraisal shall be admissible in evidence. The referee shall take and subscribe an oath to be attached to the appraisal that he or she has truly, honestly and impartially appraised the property to the best of his or her knowledge and ability. Any referee so appointed may be called and examined as a witness by any party or by the court itself. The court must fix the compensation of the referee in an amount as determined by the court to be reasonable, but those fees shall not exceed similar fees for similar services in the community where the services are rendered, which may be taxed and allowed in like manner as other costs. Before rendering any judgment the court shall find the fair market value of the real property, or interest therein sold, at the time of sale. The court may render judgment for not more than the amount by which the entire amount of the indebtedness due at the time of sale exceeded the fair market value of the real property or interest therein sold at the time of sale with interest thereon from the date of the sale; provided, however, that in no event shall the amount of the judgment, exclusive of interest after the date of sale, exceed the difference between the amount for which the property was sold and the entire amount of the indebtedness secured by the deed of trust or mortgage. Any such action must be brought within three months of the time of sale under the deed of trust or mortgage. No judgment shall be rendered in any such action until the real property or interest therein has first been sold pursuant to the terms of the deed of trust or mortgage, unless the real property or interest therein has become valueless.
§ 580a.Money Judgment Sought For Balance Due Upon Obligation Following Exercise of Power of Sale In Deed of Trust Or Mortgage
Title 8. Of the Trial and Judgment In Civil Actions · Chapter 1. Judgment in General · Last amended 1989 · Last verified July 28, 2026
In one sentenceSection 580a governs how a plaintiff pleads and proves a money judgment for the balance still owed after a deed of trust or mortgage's power of sale has been exercised, requiring disclosure of the debt, sale price, and appraised fair market value, and capping any judgment at the shortfall between the debt and that fair value.
Full Text of § 580a
Plain-English Summary
When real property secured by a deed of trust or mortgage with a power of sale has already been sold through that power, this section controls how a plaintiff pursuing the remaining balance must plead and prove the case. The complaint has to disclose the entire secured indebtedness at the time of sale, the price the property brought at that sale, and the property's fair market value on the date of sale.
Fair market value doesn't rest on the plaintiff's say-so. Either party can ask the court, at least ten days before trial, to appoint a probate referee to appraise the property as of the time of sale, and the court can make that appointment on its own motion at any time. The referee's sworn appraisal is filed with the clerk and is admissible in evidence, and either party may call and examine the referee as a witness.
The cap on any judgment follows directly from that appraisal: the court can award no more than the amount by which the total indebtedness at the time of sale exceeded the property's fair market value at that time, plus interest from the sale date — and in no event more than the difference between the sale price and the total indebtedness. Any such action must be brought within three months of the sale, and no judgment can be entered until the property has in fact been sold under the deed of trust or mortgage, unless the property has become valueless.
Because § 580d separately bars deficiency judgments entirely following many trustee's sales under a power of sale, and § 580b bars them for purchase-money loans, this section's fair-value procedure operates within a narrower band of cases than its text alone might suggest — but where it does apply, its appraisal and pleading requirements are not optional.
Frequently Asked Questions
What must the complaint disclose when seeking a money judgment after a trustee's sale?
The entire indebtedness secured by the deed of trust or mortgage at the time of sale, the price the property sold for, and its fair market value on the date of sale.
How is fair market value determined for purposes of this section?
Either party, or the court on its own motion, can have a probate referee appraise the property as of the time of sale; the sworn appraisal is filed with the clerk and is admissible in evidence.
How is the amount of any judgment under this section capped?
At no more than the excess of the total indebtedness at the time of sale over the property's fair market value at that time, and never more than the difference between the sale price and the total indebtedness.
Is there a deadline for bringing this kind of action?
Yes, within three months of the sale under the deed of trust or mortgage.
Amendment History
Amended by Stats. 1988, Ch. 1199, Sec. 6. Operative July 1, 1989, by Sec. 119 of Ch. 1199.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: deficiency judgment fair value offset californiatrustee sale deficiency judgment procedure california