Legal Question in Real Estate Law in California

California's Anti-Deficiency Law
I am doing a short sale on my non-recourse property with 2 ''purchase money'' loans. The junior lender is asking me to sign a document stating that they have the ability to pursue deficiency after closing. They refuse to approve the short sale without the document. I thought that the California's Anti-Deficiency Law prohibited this. A couple questions:

1. Is the lender unaware of California law and that is why they are asking me to sign this?

2. If I do sign it, is it void due to California law? Or, am I giving up my anti-deficiency rights once I sign the papers?

3. Is the lender breaking any laws simply by requesting that I sign this paper?

Asked on 1/21/09, 8:46 pm

Terry A. Nelson Nelson & Lawless

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Re: California's Anti-Deficiency Law

You thought wrong. Only a purchase money loan is non-deficiency. Sign it or don't get the loan, your choice.

Answered on 1/21/09, 9:09 pm

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