No Short Sale Deficiencies for the First Trust Deeds

Beginning January 1, 2011, a new California law will prohibit a seller's first trust deed lender from obtaining a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the amount owed on the loan. This law will generally apply to the first trust deeds secured by one-to-four residential units, but will not limit a lender seeking damages for fraud or waste by the borrower.

For additional information or to find out if you qualify for a short sale call or visit us on line. 

Teri Pacitto, Broker, SFR, CDPE