California Short Sale Law; SB458, Civil Code 580d,e Stops Recourse

 

 What Happens To Second Mortgage on a Short Sale?

Can My Second Mortgage Come After Me After I Do A Short Sale?

Will My Second Loan Try To Collect?

Can My Lender Sue ME?

Will I have To Pay My Lenders Back After A Short Sale?

What Is The Short Sale deficiency law In California?

How Can I Find The Best Short Sale Agent?

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What is the Law about foreclosure second mortgage in california is there recourse?

As a Sacramento Area Short Sale Specialist, Multi-Certified Short Sale Negotiator and Experienced Short Sale Agent, I must stay abreast of the continuous changes in California Foreclosure Law and must understand how these new laws are going to affect short sales.  One of the latest laws that affect short sales is SB458; Sacramento’s Newest Short Sale Deficiency Law that went into effect immediately the same day it was signed; July 15, 2011.

You see, on January 1, 2011 the first Short Sale Recourse Law In California went into effect.  SB 931 (2010)  was put into law and it became Civil Code of Procedure 580(e). It requires that any first lender that agrees to a short sale accepts the agreed upon short sale payment as payment in full of the outstanding balance. That meant there was no recourse on first mortgages in California… but unfortunately, the rule did not apply to junior lien holders.

This new law: SB 458, Extends the Anti-Recourse Protections of SB 931 to Second Mortgages and ALL JUNIOR LIEN-HOLDERS and prohibits a deficiency judgment coming from any junior lien holder, including all related claimants, investors or insurers! With this new law, there is also no recourse on second mortgages in California!

Questions on your particular situation?

Contact us today at Forth Hoyt’s Sacramento Short Sale Center

Or find out here about New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?