What is “waste” and how does a borrower become liable for it?
“Waste” means the debtor damaged the property or allowed it to become damaged and the debtor can be held accountable for that even where there is no deficiency available for the foreclosure. As in California and Arizona (see above and below), the debtor can be held liable for damages done by casualty or neglect while he or she was in title to the property which occurred prior to the foreclosure under the common law of “waste” (destruction). All persons, including the debtor are always accountable for wasting the collateral or property of another.
