WHAT IS SB931?
In the State of California, on January 1, 2011, Senate Bill 931 or SB 931 went into effect. "This bill would prohibit a deficiency judgment under a note secured by a first trust deed or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage".
In other words, if the first mortgage company or first loan on a property accepts a Short Sale, the lender should not be able to pursue the borrower on the loan or the seller of the property for the amount of the difference between the balance of the mortgage and the amount of money that the lender receives from the Short Sale.
The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of an attorney and tax advisor.
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