The owner of a parcel of real property with a building on it demolishes the building to make way for new development.  Unfortunately, the owner is unable to complete the development and ends up defaulting on a purchase money promissory note secured by a deed of trust on the property.  The holder of the note and DOT exercises the power of sale under the DOT and buys the property back at a foreclosure sale for less than the amount due under the note.  The note holder then sues the former owner and others for waste and impairment of security based on their demolition of the building, seeking as damages the loss of value in the property that resulted from the destruction of the building.  Is such an action barred by the antideficiency statutes? Continue reading →