Archive for October, 2010

SB931 New California Short Sale Law Stops Banks In Their Tracks On First Mortgages

Short Sales Now Exempt From Anti Deficiency

Short Sales Now Exempt From Anti Deficiency

Stops Deficiency Judgments On All First Mortgages After Short Sale

California SB931, signed October 1, 2010 stops lenders from pursuing deficiency judgments on all first mortgages after short sales in California.

Questions about your particular situation? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.

In layman’s terms; this new California short sale law means the bank can’t come after you on the amount they were shorted after they agree to a short sale and issue a Short Sale Approval Letter.

New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?

Check out the official Full Text from Around The Capital:

SB 931 (Ducheny)
Mortgages: deficiency judgments.

LEGISLATIVE COUNSEL’S DIGEST

SB 931, as amended, Ducheny.

Mortgages: deficiency judgments. Existing law authorizes an action for a deficiency judgment for the balance due upon an obligation for the payment of which a deed of trust or mortgage with power of sale upon real property or any interest therein was given as security, as specified. Existing law prohibits a deficiency judgment in any case in which the real property or an estate for years therein has been sold by the mortgagee or trustee under power of sale contained in the mortgage or deed of trust.

This bill would prohibit a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. The bill would provide that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. The bill would specify that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any 3rd party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. The bill would make these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state.

Even If Refinanced; Even If Cash Out! No More Deficiency Judgments After A Short Sale in California On First Mortgages! Whether Refinanced Or Not!

Authored by Forth Hoyt | Discussion: 1 Comment »





Copyright © 2007 Sacramento Real Estate Talk     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs

Disclaimer: The information contained on this website is deemed reliable but not guaranteed in any way. This information is not to be taken as legal advice

Phone Number: 916-248-7777 / DRE: 01319540