Relief from deficiency judgment starting January 1, 2011 was signed by Governor Schwarzenegger to protect homeowners who have NOT refinanced their first mortgage.
This comes as a relief for many Short Sale sellers. Senator Ducheny introduced SB 931 to help protect distressed homeowners selling their homes by Short Sale with first deeds of trust.
SB 931 requires the Lender of a Short Sale in California to accept the amount paid for the Short Sale as “paid in full” and prohibiting the lender from going after the seller for the deficiency or the difference in the loan and what the bank received when the property sold.
This only applies to first mortgages. At this time we do not know if SB 931 will be retroactive for those had Short Sales previously or not. Short Sales have and will continue to be the better route for many distressed homeowners rather than foreclosure.
However, as always not every distressed homeowner is the same, your circumstances may be such that a Short Sale is not in your best interest. That’s why you should always check with an attorney or CPA before proceeding with a Short Sale.
If you find that you are having trouble paying your house payment, give me a call. As a Sacramento Short Sale Realtor I am here to help you, we’ll sit down together and see if you qualify for a Short Sale.