Governor Approves Senate Bill 931
On September 30, 2010, Governor Schwarzenegger approved and signed off on Senate Bill 931.
Here is a short summary of Senate Bill 931: Effective January 1, 2011, any mortgage lender who holds a first trust deed cannot obtain a deficiency judgment against the seller after a short sale.
If the first lien holder provides written consent to a short sale, this will 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.
On September 30, 2010, Governor Schwarzenegger also vetoed Senate Bill 1178, a bill that would have extended anti-deficiency protection to those who refinanced their purchase money loans to obtain a lower interest rate.
Lots of things are going on in the pre-foreclosure arena these days. Here’s the latest news:
Title Companies Will Not Issue Insurance on REOs
Short Sale Expeditor
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hmm! how will the banks take this bill? It is great news for the homeowner but what about short sale approvals? Will it have unintended consequences? will the banks be less likely to approve a short sale where the are multiple loans? what do you think?
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