One-action rule

What is One-action rule?

A legal requirement used primarily in California that indicates that a lender may only file and pursue one legal action in the event of a loan default. This may be an action on the note or a foreclosure of the property – but not both. This is designed to prevent deficiency actions on a note contemporaneously with the foreclosure of the property. If the foreclosure is the route taken and the property is sold for less than the amount of the loan, there can be no deficiency.