Saturday, February 26, 2011
Bill signed by Governor Schwarzenegger Prevents Lenders from Obtaining a Deficiency Judgement after a Short Sale
As of January 1, 2011, a bill signed by Governor Schwarzenegger prevents a mortgage lender from obtaining a deficiency judgement after a short sale. The bill applies to lenders who hold a first trust deed and states that if the lender has given written consent they must accept the sale profit as full payment. Any remaining amounts owed must be liquidated.