Legal Question in Real Estate Law in California

Re: real estate short sale

A short sale of a house is a sale where the proceeds of the sale are less than what is owed on the property. Usually, but not always, the lender is the buyer or has agreed to accept the proceeds of the sale in satisfaction of the loan. In either of these two cases, the lender is a party to the deal, and figuring out whether the short seller is liable for the shortfall, or any part of it, is a matter of reading and understanding the contract. Usually, the answer will be "no" - nothing else is owed.......however, this may not always be the case!