Just over the weekend, Governor Jerry Brown signed Senate Bill 458 which will further protect homeowners attempting short sales by
barring first and secondary lien-holders from going after sellers for money owed after the short sale close.
Effective immediately, the new law builds on SB 931 a state law which protected homeowners from deficiency judgments for first lien holders but did not account for the second lien. The new law, which became effective immediately, now prohibits secondary lien holders from pursuing deficiencies after a short sale closes.
Finding a short sale agent who can adeptly navigate through the short
sale minefield remains the challenge for many distressed homeowners.