Friday, October 1, 2010

New Short Sale Bill signed into law by Governor Schwarzenegger

I want to let you know that Gov. Schwarzenegger just signed the attached bill into law, which prohibits deficiency judgments on first deed of trust on residential property (4 units or less), where the property is sold through a short sale.

The law hasn't allowed deficiency judgments on foreclosure sales (ie., lender can't recover from the borrower the difference between the amount owing on the loan and the amount the lender recovered from selling the property) since the 1930s, but that wasn't the case with short sales (unless the borrowers negotiated a deal otherwise with the lender) until now.  With this new law, a lender cannot recover a deficiency judgment following a short sale.  However, this protection only applies to natural persons (individuals, not corporations), and only applies on first trust deeds.

If you are interested in selling your house please contact me.  If your home is underwater and you are considering a short sale, contact me.  If you are thinking about pursuing a loan modification, contact me. If you are thinking about buying a home in the East bay, now is a very good time. Rates are low. Lots of inventory keeping prices down.  Check out my web site for a great search engine and searches already set up for you.  In the meantime, have a great day and enjoy what you have.  Everything passes, everything changes. ...including you and me
http://www.billfletcherhomes.com/
bill@billfletcherhomes.com

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