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

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

Here is the exact text of the bill –

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.

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