There are benefits when doing a short sale in CA.

There are benefits when doing a short sale in CA.
California homeowners that find themselves having to do a short sale have some benefits not found in other states. Calif state law does not allow the sellers bank/lender to ask the seller to contribute any funds toward the sale of the property. It's also state law that the bank or lender can not come back after the short sale seeking any payment toward the deficiency. When the short sale is approved and closed it's over with no recourse.

Calif homeowners also do not have to worry about the IRS or state seeking tax dollars from them for the loss reported by the lenders in the form of a 1099c.

So there are some benefits allowed to the homeowner here in the state of Calif when they find they need to short sale their homes to move on.