Sacramento Short Sale Specialist And Certified Short Sale Expert Forth Hoyt Reports:
California’s Newest Anti-Recourse law: Civil Code Of Procedure 580(e) extends protection from collections to ALL Mortgages, even junior liens, or “seconds”.
The newest California Short Sale Anti Recourse Legislation, introduced by Senate Majority Leader Ellen M. Corbett (D-San Leandro) . This bill would provide that a loan used to pay all or part of the purchase price of real property or an estate for years includes a subsequent loan, mortgage, or deed of trust that refinances or modifies the original loan…
No matter if homes have been refinanced or not, all proceeds from short sales will be considered payment in full.
The bill would prevent holders of second mortgages from pursuing a borrower for unpaid debt after a short sale. That prohibition already applies to holders of first mortgages in California.