New California Law would eliminate the 1st lenders right for a deficiency judgment

California State Senate
Image via Wikipedia

California Senate Bill 931 is good news for many homeowners trying to do a short sale.

Here is the exact text of the bill – http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.html

It will not protect the seller from a claim of fraud or waste.  But most sellers will have this protection of no deficiency if they do a short sale on the 1st loan only.  NOTE: This law does not go into effect until January 1, 2011.

Enhanced by Zemanta