C.A.R. just passed me this summary of Senate Bill 931, which sounds like the existing “One Action Rule” that applies in the case of foreclosures, which says the deed holder is allowed one action, either take the proceeds from the foreclosure or a deficiency judgment for the unpaid debt.
“No Short Sale Deficiencies: Starting January 1, 2011, a seller's first trust deed lender cannot obtain 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 remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931.”
SUNIL SETHI REAL ESTATE
Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE
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