Finally passing on September 30th the Senate Bill set to change the name of the game made it through the door. Senate Bill 931 is set to take effect on January 1, 2011. This highly anticipated law is set to disallow a seller’s first trust deed lender from obtaining a deficiency judgment against the seller after a short sale. Through the completion of a short sale the first trust deed shall be obligated to accept the sales proceeds as full payment while discharging the remainder owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931.
Closely related that was a veto that came from Governor Schwarzenegger and that was on Senate Bill 1178, the sponsored bill, which would have extended California’s anti-deficiency protection to refinance loans. Sorry Refis… A good negotiation team can still get you out of your bank coming after you.
If you have any questions call 888-934-3444 to speak to a specialist to review your file with right away. The wrong team on your side could cost you hundreds of thousand.