Contra Costa, California Real Estate

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California Senate Bill 931 prevents Short Sale Deficiencies on first mortgages

Starting January 1, 2011, California Senate Bill 931 prohibits lenders from obtaining a deficiency  judgment against the seller after a short sale

According to the Bill, the lender's written consent to the short sale requires them to accept the sales proceeds as payment in full and discharge the remaining balance owed on the loan.

This applies to first Trust Deeds (more commonly known as first mortgages) secured by one-to-four unit residential property, but doesn't limit the lender from seeking damages for fraud or waste by the seller.


Wendy Cutrufelli

 

 

 



Wendy Cutrufelli
Broker Associate
925.917.1135

The positions on this site are my own and don't necessarily represent Alain Pinel Realtors' positions, strategies or opinions.

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2 commentsWendy Cutrufelli, Contra Costa Realtor • October 05 2010 11:33AM