Can My Second Loan Sue Me? Whats The New Law In California Regarding Short Sales?
California FRecourse Law Signed
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 New Short Sale Deficiency law In California? How Can I Find The Best Short Sale Agent? What Is The New Law Regarding Short Sales In California? After a foreclosure… Second Mortgage Recourse in California
As a Sacramento 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 . I spend a large part of my day on the phone with mortgagers, servicers and investors, negotiating short sales for my clients here in Folsom, El Dorado Hills and the Sacramento area. I find myself constantly helping to train the people I am negotiating with, sending them information and explaining how short sales work in Sacramento.
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.
This January 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 Mortgagesand 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 after a Short Sale!
After a foreclosure, in California Second Mortgage Recourse is not as cut and dry… there can be many variables…
Questions on your particular situation? Call me today! 916-316-3810 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?
I am not an attorney, and you should talk to one!! Call for a referral!