There is a new law in the state of California whereby if a lender agrees to a shortsale, that any excess mortgage owed by the homeowner, will no longer be due and owing. does this new law apply to equity loan mortgages too? Can Chase come after me?
Asked on 2/08/11, 6:31 pm
2 Answers from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
The law, SB 931, is now on the books, effective 1/1/11, as Code of Civil Procedure section 580e.
It applies to short sales involving the holder of the first only. If what you are referring to is a second note and deed of trust, the answer is no, the new law does not apply.
Answered on 2/08/11, 7:21 pm
Anthony Roach
Law Office of Anthony A. Roach
It also only applies to any dwelling of not more than four units. So you if you have five units, or commercial property, or raw land, it does not apply to you.
Answered on 2/09/11, 7:07 am
