Governor Jerry Brown signed Senate Bill 458 into law this past Friday. The law provides further anti-deficiency protection to homeowners who short sell their property. As you may recall, Governor Schwarzenegger signed SB 931 (see prior blog post here) which prevents first lien holders from going after their borrowers for the difference between the sale price and the remaining loan balance of the first loan.
SB 458 expands on that anti-deficiency protection to all loans on a home when a short sale occurs.
Your realtor, financial planner/CPA can help you decide whether pursuing a short sale is worthwhile in consideration to your goals. Contact an attorney to help you ensure that the proper documents and procedures are followed to help you take advantage of this new law. Call Bustarde Law to discuss your legal matters.
