Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

SB 931 Short Sale Deficiency Protection Bill Signed by California Governor
SB 931 Bill Passed by the California State Senate on August 23rd which provides Short Sale Deficiency Protection for First Mortgages in a short sale transaction was signed by the Governor on September 30th and will become effective for transactions after January 1, 2011.

The legislative counsel's summary of the bill follows:
"This bill would prohibit a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the (owner) sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of theholder of the first deed of trust or first mortgage. The bill would provide that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. "
Existing law prevents a lender who has made a purchase money mortgage ( a loan used to purchase a home , not a refinance ), from pursuing a deficiency ... more

__________________________________________________
Are you on The Rain? Grow Your Network!