Can the bank come after you for the difference after a short sale? What are recourse rules in California?
As a Sacramento Short Sale Specialist, and a certified short sale expert, I usually talk to several people each day who have questions about recourse, deficiency judgments, and the downfall or risk of a short sale.
Please understand I am not a lawyer, I cannot give legal advice. But I have been present during many consultations with great Sacramento area Real Estate attorneys, so I can tell you what I have heard from them.
For a list of these great lawyers, who all have significant experience in recourse law, contract law, real estate mortgage law etc. and have years of real time experience negotiating with loss mitigation, foreclosure and short sale departments in today’s market, Contact us Today At Forth Hoyt’s Sacramento Short Sale Center.
Here’s what I know about short sales, recourse loans, default judgments and second mortgages or junior liens:
SB931 will go into effect January 1 2011 and will make it illegal for lenders to pursue deficiency on any first mortgage. But that does not apply to second mortgages. Those have to be negotiated and taken care of in the short sale process, and those may be recourse debt, depending upon if the home has ever been refinanced. Purchase money loans; or loans that were used as acquisition debt, are non recourse. Again, I am not an attorney and the law is a “moving target”, things change, please Contact us Today At Forth Hoyt’s Sacramento Short Sale Center if you have specific questions or need a referral to an outstanding lawyer who can answer your questions.
Questions on your particular situation?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
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