SB 931 - New Deficiency Protection for Fullerton Short Sales
Great News For Fullerton Short Sales Thanks To Anti-Deficiency Law SB 931
California Gov. Arnold Schwarzenegger signed senate bill SB 931 into law Oct. 1. The new short sale law prohibits mortgage holders from pursuing deficiencies after a short sale has been accepted. The law covers all first mortgages, and applies whether or not the property has been refinanced.
Before S.B. 931, many distressed homeowners who sold their homes for less than the owed amount were still in danger of owing the amount bank was shorted, or the deficiency; only loans for “purchase money” were safe. Sometimes lenders were giving deficiency waivers, but now it is required by law.
Source: Sacramento Short Sale Center
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