Good News for California Short Sales with Junior Liens
Until recently, a California short sale with a junior lien (second mortgage) left open the slim possibility that the seller might have to pay a deficiency, even if the junior lienholder agreed to the short sale. However, a new state law recently extended the same deficiency protections that previously existed for first liens in a short sale to junior liens, as well.
The new law, which took effect on July 15, 2011, means that in the vast majority of cases, homeowners considering a short sale no longer need to fear the prospect of a deficiency. In layman's terms, the bank will no longer be able to come after you after you complete a short sale (with a few, relatively rare exceptions).
To learn more about the new California law, visit the SB 458 short sale deficiency page on The Dream Team's website, or for additional information about short sales in general, visit the short sale information page.
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