San Diego Short Sale Blog!

Homeowners ordinarily cannot be liable for a deficiency judgment, due to two statutes: Code of Civil Procedure 580b and Code of Civil Procedure 580d. CCP 580b provides that no deficiency judgments can be obtained after foreclosure sales on purchase money loans secured against residential property with one to four units. CCP 580d provides that no deficiency judgment can be obtained in any non-judicial foreclosure. Taken together, these two statutes make deficiency judgments unobtainable in virtually all foreclosures against homeowners.


But neither of these statutes applies to a short sale situation. CCP 580b does not apply, because there is no foreclosure sale of any kind. CCP 580d does not apply, because there is no non-judicial foreclosure.

In short, if the lender (Wilshire) agrees to permit a sale of the property for less than the amount of the debt, there is nothing in California statutory law which prohibits the lender from turning around and suing the borrower for the rest of the money owing under the mortgage. Thus, in order to protect the borrower, there should be verbiage in the short sale agreement expressly stating that the lender will take the money from the sale, in full satisfaction of the debt, and that the lender waives any right to pursue the borrower for the rest of the money. I would request the same from both lenders if there are two trust deeds from different lenders.
I would further indicate the need to have ANY agreement made be signed by the lender, especially after this recent appellate court ruling:

LOAN FORBEARANCE AGREEMENTS MUST BE IN WRITING
A lender's agreement to forbear or refrain from foreclosing on a home must be in writing and signed by the lender, even if the borrower has performed on the agreement by making a payment. This was the ruling of the recent appellate court case of Secrest v. Security National Mortgage Loan Trust (2008 WL 4516413). This case serves as a good reminder for REALTORS® and their clients to get loan forbearances, loan modifications, and other agreements with mortgage lenders in writing and signed.

I am not an attorney and any individual considering a short sale should seek the counsel of a real estate attorney or tax professional before listing the property.  San Diego short sales can be accomplished relatively quickly if you are working with a qualified short sale expert.  Call 619-507-1554 for free information on short sales.

Posted by Clay Gosnay on February 17th, 2009 4:00 AMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

Clay Gosnay - President

Cell: 619-663-9268

Email: Clay@CityfiedRealty.com

CA DRE License #01387440


CityFied Realty Inc. #01887664 1625 Hotel Circle S San Diego, CA 92108
Phone: Fax:

4S Ranch Short Sale | Alpine Short Sale | Allied Gardens Short Sale | Bay Park Short Sale | Bonita Short Sale | Cardiff Short Sale | Carlsbad Short Sale | Carmel Mountain Short Sale | Carmel Valley Short Sale | Chula Vista Short Sale | Clairemont Mesa Short Sale | Coronado Cays Short Sale | Coronado Short Sale | Del Cerro Short Sale | Del Mar Short Sale | Downtown Short Sale | East Lake Short Sale | El Cajon Short Sale | Encinitas Short Sale | Escondido Short Sale | Golden Hill Short Sale | Hillcrest Short Sale | Imperial Beach Short Sale | Kensington Short Sale | La Jolla Short Sale | La Costa Short Sale | La Mesa Short Sale | Lakeside Short Sale | Leucadia Short Sale | Mira Mesa Short Sale | Mission Bay Short Sale | Mission Beach Short Sale | Mission Hills Short Sale | Mission Valley Short Sale | North Park Short Sale | Ocean Beach Short Sale | Oceanside Short Sale | Pacific Beach Short Sale | Point Loma Short Sale | Poway Short Sale | Ramona Short Sale | Rancho Bernardo Short Sale | Rancho Santa Fe Short Sale | Rancho Penasquitos Short Sale | San Carlos Short Sale | San Elijo Hills Short Sale | San Marcos Short Sale | Santaluz Short Sale | Santee Short Sale | Scripps Ranch Short Sale | Solana Beach Short Sale | Sorrento Mesa Short Sale | South Park Short Sale | Spring Valley Short Sale | Talmadge Short Sale | Tierrasanta Short Sale | UTC Short Sale | Valley Center Short Sale | Vista Short Sale | Orange County Short Sale | Riverside County Short Sale | Los Angeles Short Sale

Copyright © 2012 CityFied Realty Inc. #01887664
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
All rate, payment, and area information are estimates and approximations only.