Can the bank go after a borrowers personal assets if the loan is greater than the home value?
California has 2 types of foreclosure so it depends on what is spelled out in your mortgage. If you mortgage allows for Judicial foreclosure, when the bank has to actually go to court and get an order from the judge to sell your property, then yes the bank is allowed to get an additional judgement to attach a lein to your personal assets. If your mortgage has a Power of Sale clause, then the bank was allowed as a condition of your mortgage to sell the property by following a few simple steps and doesn't need to go before a judge. In this case they forfit the right to then get any additional money owed to them if the sale of the property comes up short. This is called a non-judical foreclosure.
