Second Mortgage in San Diego

Mostly not, because they are built around your own home. California's homestead exemption protects the debtor's principal dwelling from judgment creditors, and by statute the exemptions do not apply to the foreclosure of a deed of trust at all. The Homeowner Bill of Rights is limited to owner-occupied first liens securing a loan made for personal, family or household purposes, so a business-purpose second on a rental sits outside it on both counts. One rule does reach rentals: CCP 580e bars a deficiency after a lender-approved short sale of a dwelling of up to four units with no occupancy test, but it does not apply when the borrower is a corporation, LLC or limited partnership, so how you hold title matters. Business-purpose real estate lending is itself a licensed activity in California, under the California Financing Law or a real estate broker license. This is not legal advice; your attorney or title company has the final say. See the second mortgage program page for terms.

The second lender gets notice, a chance to cure, and a place in line for any surplus. California deeds of trust are usually foreclosed by trustee sale under the power of sale, with at least three months between the notice of default and the notice of sale. Civil Code 2924b requires notice of the default to be mailed, within one month of recording it, to the holder of any later-recorded deed of trust, and notice of the sale at least 20 days before it. Under 2924c a junior lienholder can reinstate the senior loan until five business days before the sale date in the first notice of sale. If the sale brings more than the senior debt and costs, 2924k pays junior liens in order of priority before anything goes to the owner. Under 2924m a trustee sale of a 1 to 4 unit property is not final at the gavel, because eligible bidders such as tenants and prospective owner-occupants get a window after the sale, so surplus can take longer to settle. The sale must be held in San Diego County, and the recorded notice of sale names the time and place for each property. Read lien position explained before you stack debt.

The courts have decided this on particular facts, so the answer is case by case. For a San Diego rental carrying two loans, the law below is the starting point, not an answer for your note. CCP 580d bars a deficiency on a note whose own deed of trust was sold under a power of sale. In Black Sky Capital v. Cobb (2019), the California Supreme Court restated Roseleaf v. Chierighino (1963): section 580d "does not appear to extend to a junior lienor whose security has been sold out in a senior sale." On the facts in Black Sky, where one creditor held both notes, signed more than two years apart with no evasive loan splitting, the court held that 580d did not bar a deficiency on the junior note. Those are holdings on their facts, not a rule for any other loan. Separately, Civil Code 2924.13, signed on June 30, 2025 as part of AB 130, makes it unlawful to foreclose a subordinate deed of trust on residential property if the servicer sent the borrower no written communication for at least three years or skipped a periodic statement the law required, and bars a nonjudicial foreclosure until the servicer records and mails a certification under penalty of perjury. The statute's text shows no unit-count, occupancy or loan-purpose limit, and whether it reaches business-purpose seconds is unsettled: a lawsuit filed September 8, 2025 (California Mortgage Association v. Bonta, E.D. Cal.) alleges it reaches both consumer and business loans, which is an allegation, not a ruling. How either rule applies to your loan is a question for your attorney.

Recording fees, yes; transfer tax, no. California's documentary transfer tax does not apply to an instrument given to secure a debt, and the state charges no mortgage tax, so the county's transfer tax is a charge on conveyances, not on your deed of trust. The San Diego County Recorder/County Clerk fee schedule effective July 1, 2025 lists a deed of trust among the titles tied to the real estate fraud fee: $17 for the first page (against $14 for titles without it) and $3 for each additional page, plus the $75 SB 2 fee per transaction per parcel, capped at $225. That $75 exempts a recording tied to a transfer subject to transfer tax or a transfer of a home to an owner-occupier, and a cash-out second recorded without a sale fits neither on its face. As an illustration, not a quote for your documents: a 20-page deed of trust comes to $17 + (19 x $3) + $75 = $149 in county charges, before any other fee. All eighteen cities and the unincorporated county record with the one county Recorder.

Only through an individual who holds the licence. The program accepts short-term rentals and LLC borrowers, but the City of San Diego's licence rules decide whether the income is there. The city's code defines a host as a natural person with the legal right to occupy the dwelling unit, and its FAQ is direct: an LLC cannot be the host, and each host may hold only one licence at a time. A host who is not the owner shows the right to occupy with documents, which can be LLC documents naming the host as a managing member, plus a Business Tax Certificate. The whole-home licence tier outside Mission Beach is capped at 1% of the city's housing units outside that area, and licences do not transfer between owners or dwelling units, so the licence does not convey when the property sells. Check the HOA too: California voids most association bans on renting, but lets an association prohibit rentals of 30 days or less. We did not research short-term rental rules in the county's other cities; check with the city where the rental sits.

Tenant protections reach further, and the bill carries charges outside the rate. San Diego has no local rent cap; the statewide AB 1482 cap applies. On top of it, the City's Residential Tenant Protections Ordinance requires just cause from the first day of a tenancy and relocation assistance on no-fault grounds. The City Attorney's FAQ indicates its single-family and condominium carve-out is not available when the landlord is a corporation, LLC or REIT; confirm the current text with your attorney before relying on it. On taxes, the county's fiscal year 2025-26 ad valorem rates run from 1.01903% to 1.28664% depending on the parcel's tax rate area, and Mello-Roos and other fixed charges sit outside that rate entirely. Pull the parcel's own bill before you size a second against its rent. Talk to your attorney about how title affects your leases.