Short Sale Deficiences Fact #21

Regardless of the  CA anti-deficiency law – which went effective July 15, 2011 –  it would be prudent for a borrower to obtain the lender’s written and signed agreement to release the borrower from any and all liability for the mortgage loan, and to report “no deficiency balance” to the credit bureaus.

If you’re working with a Short Sale Specialist make sure he/she points this language out to you on your short sale approval letter. (CA Civil Code Section 580c)

Credit: C.A.R. Legal Department