Great article on the Agent Insider Blog, this would be great news if this type of bill was passed here in Utah!
California Senate Bill 458 was signed into law on July 15 and is effective immediately for all short sale transactions the close after July 15, 2011. The law provides that junior lienholders no longer have any deficiency rights against the borrower after a short sale.
This law is being hailed as a major victory for borrowers because it removes the potential for deficiency liability after the short sale is completed and thus brings more certainty to the short sale process for borrowers. Additionally, it is hoped that by removing this negotiating impediment, that the short sale process will be quicker and smoother.
What is very important to note is that this law affects all pending but not yet closed short sales....
Click here to read the full article on the Agent Insider blog.
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