Short Seller’s Newest Anti Deficiency Protection for Sacramento Short Sellers With SB 931
August 24th, 2010 Categories: Default News, Foreclosure News, Short Sales
California May Have a New Anti Deficiency Law Protecting Struggling Homeowners
Sacramento area Short Sale Specialist and Sacramento Area Certified Short Sale Agent Forth Hoyt Reports on:
The Little Bill That Could-
Will the newest California anti deficiency bill become law? The Newest Short Sale Protection law for struggling homeowners will surely affect the Sacramento short sale market…
Sacramento Short Sales will surely increase if the little bill that could is signed into law- Short sellers will be glad to hear bout this newest California anti-deficiency bill that is specifically written to protect short sellers from recourse - why are we just hearing about this? Nearly silently, this newest foreclosure protection bill in California, Senate Bill 931 passed completely unopposed last week and is headed for Governor Schwarzenegger to sign into law. All eyes had been on Senate Bill 1178, which stops lenders from pursuing homeowners who have refinanced and later defaulted, so the hoopla over SB 931 was overlooked. Lawyers sometimes tell potential short sale sellers that a foreclosure or a bankruptcy offers better protection for the homeowner than a short sale.
New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?
Just the first couple lines from the SB 931 Assembly Hearing: June 7, 2010
ASSEMBLY COMMITTEE ON BANKING AND FINANCE
Mike Eng, Chair
SB 931 (Ducheny) – As Amended: June 1, 2010
SENATE VOTE: 31-0
SUBJECT: Mortgages: deficiency judgments
SUMMARY: Provides that in the case of a short sale on residential real property, the holder of the first mortgage or deed of trust shall fully discharge any remaining borrower’s indebtedness following the sale when the sale has been agreed to in writing. Additionally, that nothing shall limit the ability of the holder of the first deed of trust or first mortgage to seek damages, or use existing rights or remedies in those cases where the homeowner has committed fraud or waste in connection with the sale of the real property.
If signed, this newest California Short Sale Recourse Law will have a huge impact on our Sacramento area short sale inventory, as many more struggling homeowners may use a short sale as a way to get out of their upside down home, if there is no lender recourse for the amount the bank is short…
More info on New Deficiency Protection For Sacramento Short Sales; SB 931 Protects All First Mortgages.
Need information on you particular situation? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.
Who knows what happens next… All I know is:
If you tell the truth you don’t have to remember anything.
Great…
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