Sacramento Short Sale Certified Specialist and Folsom Certified Short Sale Specialist reports:
When Governor Schwarzenegger signed SB931 last October, California was set to become SHORT SALE HEAVEN!
Short Sale and Foreclosure Deficiency in California may be a thing of the past!
Sacramento’s newest homeowner protection bill, SB 931 which goes into effect January 1 2011, stops Deficiency Judgments on short sales in California on ALL FIRST MORTGAGES no matter how are when they were originated!
Just like the Great Depression, The Great Recession is forcing lawmakers to pass laws that protect homeowners. In California during the Great Depression, thousands were losing homes to foreclosure and lawmakers in Sacramento stepped up to provide greater protection from lenders. So today, just like then, lawmakers are scrambling to come up with laws to protect homeowners from banks, after foreclosure.
California Legislature passed a series of homeowner protection bills in the 1930s, that gave banks every right to foreclose on people who didn’t make their payments, but that power ended at foreclosure. They could take back the house, but they couldn’t contact people after the foreclosure and try to collect more unpaid debt.
But during the 30’s, Sacramento lawmakers left open an important loophole in the law, which has pushed the issue back onto lawmakers agenda 80 years later. The 1930s laws protect only people with purchase money loans. What about the millions of homeowners who refinanced their purchase money loans, especially when mortgage rates fell into the low 5 percent range or lower?
SB 931 will protect from deficiency because will exempt all first mortgages from deficiency, hard-money, refinanced or purchase money, from a deficiency after a short sale as well. It prohibits deficiency judgments on a property secured by a first trust deed for a dwelling of 1 to 4 units. Every potential short sale seller with a refinanced first mortgage should be screaming for joy right now. Well, unless for some reason doesn’t sign it. But why would he not? That would be political suicide!
Add this latest Anti Deficiency Law in California to the Short Sale Tax Relief; No Short Sale Taxes! Mortgage Debt Relief Extended To California Distressed Homeowners and suddenly, California is Short Sale Heaven!
Questions on your particular situation?
Questions on Why to Short Sale?
Need information on the newest government anti foreclosure programs?