Are Homeowners Relived Of All Debt Obligations When Doing A Short Sale, Series 8

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Real Estate Agent with www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) 01761439
http://actvra.in/tdx
If your home is considered residential 1-4 units, then yes, according to CAR legal series you are relieved of debt obligations. However, be aware, that there are many changes happening on the local and national level each month. They are in favor of the homeowner's doing short sales. Make sure you hire a seasoned short sale agent and potentially speak to legal counsel. A good short sale agent will have these resources for you. See below for exact info, part of an on-going series:

II.  Effect on Borrowers of Short Sales

Q 8.  Is the seller in a short sale relieved of all debt obligations owed to the lender?

A  In general, as long as the property is a residential 1 to 4, then yes a seller in a short sale will be relieved of all debt obligations owed to the lender (see series 4).

However, for all other types of property the answer is more nuanced.  Each lender is different, but some have borrowers sign a short sale agreement that releases the lien on the property without cancelling the promissory note. This allows a short sale of the property to proceed while at least potentially leaving the borrower responsible for any deficiencies on the loan. While there are no cases directly on point yet, it would appear that the anti-deficiencies statute that protects borrowers in foreclosures (Cal. Code Civ. Proc. § 580d.) do not apply when the property is sold as in a short sale.

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Rainer
71,755
Bas Panch
SCV Home Buyer - Valencia, CA

Great explanation on Short Sales informing your readers that each lender is different and many changes occur with every month that comes in. Santa Monica Short Sale Agents like you two are really good in keeping your clients well informed. Best of luck to you two!

Mar 16, 2012 12:07 AM #1
Rainmaker
259,335
Kim & Kristine Halverson
www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) - Santa Monica, CA
Realtors

Bas: Thanks!  We wish you all the best.  :) Kristine

Mar 16, 2012 02:25 AM #2
Rainer
88,785
Troy Funk
Allison James Estates & Homes, Sarasota 941-957-3737 - Sarasota, FL
Broker / Associate

Great post for those considering a short sale, Kristine & Kim!

Mar 16, 2012 05:17 AM #3
Rainmaker
259,335
Kim & Kristine Halverson
www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) - Santa Monica, CA
Realtors

Troy:  Thanks for the support.  Homeowners need to know there are options.  Kristine :)

Mar 16, 2012 09:22 AM #4
Rainer
96,392
Stephanie Anson
Anson Properties LLC - Gainesville, FL

You explained it very well, and i agree it takes a good Santa Monica Short Sale Agents to help them through the changes in the market and guide them to the proper way in dealing with this changes.

Mar 23, 2012 10:53 AM #5
Rainmaker
260,125
Jessica Wallace
Coldwell Banker - Santa Cruz - Santa Cruz, CA
Santa Cruz Realtor (831) 419-9345

Working with an experience Santa Monica short sale agent is key to knowing what the real story is with short sales.

Mar 26, 2012 04:36 AM #6
Rainmaker
259,335
Kim & Kristine Halverson
www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) - Santa Monica, CA
Realtors

Stephanie:  Dealing with changes is key to short sales.  Well put!

Jessica:  Knowing what the real story is with short sales in Santa Monica makes all the difference.  Kristine

Apr 13, 2012 05:33 AM #7
Ambassador
2,532,074
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Hello Kim&Kristine, I'm glad you guys are doing great. Keep up the good work. Great share of a comprehensive Short Sale  Report. Continue doing great as Santa Monica Short Sale Agent. 

Nov 03, 2012 09:46 AM #8
Rainmaker
225,695
Debbie Harr
Homes that Click Realtors - Columbus, OH
Realtor Homes That Click, Worthington Ohio Homes

Excellent post as always! You two are great Santa Monica short sale agents. Keept it up!

Nov 15, 2012 09:17 AM #9
Rainer
25,656
Debra Parker
Debra Parker Real Estate, Inc. - Stuart, FL
Realtor - Stuart Florida Homes for Sale

Top Santa Mionica Short Sale Agents like you really think in terms of presentation. Great share here!

Nov 15, 2012 09:51 AM #10
Rainer
2,344
Ottawa Real Estate

Awesome post and a nice explanation indeed. Looking forward to reading more from you!

Nov 28, 2013 12:44 AM #11
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Rainmaker
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