Blog

In a July 2011 survey by the Rasmussen Reports, more than one third of homeowners stated that they owe more on their home than the home is currently worth. Another 18 percent weren’t sure, but thought there might be a possibility that they are under water. Fewer than half – 49 percent – were confident that they still had equity in their homes. (…)

Governor Brown signed into law on July 15, 2011 a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior (1st and 2nd lenders) lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
(…)