Have concerns about deficiency judgments when doing a short-sale in California? Put your mind at ease and read on...
Starting January 1, 2011, a new California law will prohibit a seller's first trust deed lender from obtaining a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the amount owed on the loan. This law will generally apply to first trust deeds secured by one-to-four residential units, but will not limit a lender seeking damages for fraud or waste by the borrower. Senate Bill 931
Please keep in mind when looking to do a short-sale. This California law is strictly for first-trust deeds. For more information about the law, please visit: http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.html. For more information about short-sales in San Diego, please visit: http://sandiego.houserebate.com/shortsales/
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