To Sign or Not To Sign: Short sale agreement with lender when they reserve the right to pursue deficiency?

Deficiency Judgements on First Mortgages in California- Not any more?

Deficiency Judgments on First Mortgages in California- Not any more?

Sacramento Certified Short Sale Specialist explains the brand new California anti-recourse Short Sale  law:

Do you sign a short sale approval letter that reserves the right to pursue a deficiency.

As a Sacramento Short Sale Specialist and Certified Short Sale Expert I get questions all the time from other agents.  Other short sale agents here in my office,  other Sacramento area short sale agents, and even (sometimes most frequently) agents from other California Short Sale Markets who find my Sacramento Short Sale Center websites  and contact me with their short sale questions.

One of the most frequently asked questions I hear is “I have successfully negotiated this short sale file but, what do I do; the  short sale agreement letter from the lender contains language where the investor/servicer  is reserving the right to pursue a deficiency judgment on the balance …do I have my clients sign it?”

First of all, I am a short sale Realtor Although I have taken hundreds of hours of training and I’m Certified many times over,  I know the ins-and-outs of successfully negotiating a short sale,  but I am not an attorney and I make sure everyone I talk to knows that-

But I do know there are new  California laws that stop banks from pursuing deficiency judgments on first mortgages.  There have always been (since the 30’s) laws stopping deficiency on purchase money loans on homeowner occupied units, but there was danger for income properties and refinanced loans where there was money taken out… before 580e; as I understand, there was valid law giving the lenders power to file for  a deficiency judgment for the amount the lender wrote off in a short sale.

Here’s what I  know about California SB931 and California Civil Code Section 580e:

Read  More on California Short Sale Anti Deficiency Law SB931.

Questions on your particular situation? Is your second mortgage non-recourse too? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
If you area homeowner faced with the decision of whether or not to sign the lender consent agreement in a Short Sale or lender short sale approval letter, be sure to get competent legal advice first from a real estate attorney. No matter what. even if you feel like you are getting great information from your lender, from the internet, from other sources- definitely spend the couple hundred dollars and talk to a real estate attorney!

You can also read  the full law here:  California SB931 and Civil Code 580e

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

Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

In closing, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.

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    New California Short Sale Anti Deficiency Law Saves Both homeowners and Investors! | Sacramento Real Estate Talk…

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