California has protected homeowners from deficiency liability from their home mortgage since the 1930s, but this protection only applies to "purchase money" loans (ie. the loan one took out when he/she bought the hosue).
When the homeonwers re-financed to take advantage of lower interest rates in recent years, for examples, they lost the legal protections and may be personally liable for the difference between the value of foreclosed property and the amount owed to the lender.
Under current law, the lenders have up to ten years to collect this deficiency liability, which could means the family could potentially be paying the debt even years after they lost their home.
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