How will I know that I am being released from the debt?

Answer:

Prior to the passage of CA Senate Bill 931 & CA Senate Bill 458, lenders could pursue deficiencies on recourse loans in California after a short sale, assuming the seller’s agent did not negotiate a “Full & Final Satisfaction of the Debt.” SB 931 applies to first liens, SB 458 applies to second or junior liens.

Now, as of July 2011, with the passage of  CA SB 458, lenders can no longer pursue a deficiency on first or second loans after a short sale in California.  In other words, they must take whatever they get in the short sale and call it a day.

• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• Share on Linkedin
• Share via MySpace
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post