Senate Bill 931 was recently passed giving much relief
to sellers who are in a short sale position.
The bill expands existing anti-deficiency laws for first lien
holders regarding loans secured by properties of 1-4
units to short sales and took effect on January 1, 2011.
This is BIG for Sellers, Investors, and Agents!
In part, the new law provides that: "No judgment shall be
rendered for any deficiency under a note secured by a first
deed of trust or first mortgage for a dwelling of not more than
four units, in any case in which the trustor or mortgagor sells
the dwelling for less than the remaining amount of the indebtedness
due at the time of sale with the written consent of the holder
of the first deed of trust or first mortgage."
Simply put, California sellers who are granted a short sale
by a lender holding a first mortgage will now be exempt from
a deficiency judgment.
This is great news for any of your deals your currently working on
and great news for the business over the next year!
One of the most discouraging aspects for a homeowner facing
a short sale is the threat of deficiency they will experience for
selling their property short.
Fortunately, with Senate Bill 931 homeowners will no longer
be responsible for a deficiency on first mortgages in California.
Full text available here:
http://www.leginfo.ca.gov/pub/
What impact do you think this will have on the market and sellers in general?
To your success,
Oliver Graf
Real Estate Expert
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