The California Legislature recently passed Senate Bill 931, which protects a seller of a one-to-four-unit residential property with only a first deed of trust, from the lender coming after them for the unpaid balance when selling their property as a short sale. The new law states by approving the short sale the lender is deemed to have released the seller for any liability for the unpaid balance. The law becomes effective January 1, 2011.
The new law does not apply to loans secured by other types of properties or second or other junior liens against the property. It also doesn't apply if the trustor is a corporation or a political subdivision of the state.
There are two exceptions to the protection. The first is if the trustor commits fraud and other second is if the trustor commits waste. In either of these situations, there's no limit to the ability of the lender to seek damages.
As with all aspects of short sales, sellers are encouraged to seek advice from competent legal or tax professionals. Real estate agents cannot give legal advice.
If you are a homeowner and are in distress call us at 916-956-4912 for more information.
Diane and Doug Briggs have earned the nationally recognized Short Sales and Foreclosure Certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows. They are also "Home Affordable Foreclosure Alternatives" (HAFA) Certified.
They are experienced successful Sacramento Short Sale Agents covering the Sacramento Metro Area, including the areas of Elk Grove, Pocket, Greenhaven, Wilton and Galt. Hablamos Espanol. Put our experience, integrity and knowledge to work for you.
Call Diane at 916-956-4912 or Doug at 916-747-1592.
Coldwell Banker
9250 Laguna Springs Drive, #100
Elk Grove, CA 95758
DRE License #: Diane Briggs: 01410348 / Doug Briggs: 01346951
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