Breaking news about short sales. Governor Jerry Brown has signed a new law that will have a profound effect on the short sale industry:
Previously, SB 931 and Civil Code 580e prevented first mortgage lenders from pursuing a seller for a deficiency after a short sale. However, holders of second or third mortgages could still pursue the seller.
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However, Governor Jerry Brown just signed Senator Corbett’s bill 458 which states that once a short sale has been approved, all mortgage debt is forgiven. This includes mortgages on primary residences, investment properties, second or third liens, etc. Once you get approval for a short sale, and once the short sale is complete, lenders can no longer pursue you for money that you previously owed them.
People who were hesitating to do short sales can now take a deep breath and sell their homes with no fear of deficiency after the fact. This bill goes into effect immediately. If you live in Chula Vista, San Diego, Bonita, National City, San Ysidro or any other South County city, and you have questions about short sales, contact me immediately. I have facilitated many short sales transactions and would love to help you avoid foreclosure by doing a short sale instead.
For FREE information about our NO COST Short Sales, please call 619-651-0433.
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