Not every mortgage loan qualifies for the protections offered by anti deficiency laws or the one action rule. Mitchell Sussman explains that even in states like California where both protections exist, a borrower must still meet specific legal requirements for the laws to apply. If a loan falls outside those guidelines, the bank may still have the right to sue for the unpaid balance. Certain types of loans often fall into this category.

State laws can make a major difference in what happens after a homeowner stops paying a mortgage. Mitchell Sussman explains that in states with anti deficiency laws or the one action rule, a borrower may be able to walk away from the home without personal liability for the loan.