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Old 01-25-2011, 09:08 PM
 
Location: Sacramento
14,044 posts, read 27,227,257 times
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Effective January 1, 2011, California first trust deed mortgage holders who consent to a short sale of residential property are prohibited from seeking a deficiency judgment for the difference between the mortgage balance and the proceeds realized through the sale.

This new law was brought about through Senate Bill 931, passed by the legislature in August and approved by the Governor.

The legislation ensures that homeowners do not incur a higher dollar amount of liability after a short sale than they would otherwise have after a foreclosure sale.


California Law Restricts Lender's Ability to Collect Deficiency Judgement After Short Sale - Yahoo! Real Estate
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Old 01-26-2011, 10:54 AM
 
Location: Rancho Cucamonga
34 posts, read 105,524 times
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Great post NewToCA! This is wonderful news for homeowners who are faced with a short sale and only have one loan. For those who also have a 2nd, definitely keep working with that bank and your agent or attorney to see if you can get them to agree to similar terms.

An official copy of the bill can be viewed here:

SB 931 Senate Bill - CHAPTERED
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