The California legislature enacted the following new laws for 2012 that are relevant to real estate.
Archive for the ‘New real estate laws in CA’ Category
NEW LAWS AFFECTING REAL ESTATE IN 2012
Thursday, January 12th, 2012NEW LAW PROTECTS HOMEOWNERS FROM LOAN LIABILITY AFTER A SHORT SALE
Tuesday, July 26th, 2011As of July 15, 2011, upon completion of a short sale with lenders’ approval, California law protects homeowners from ALL lenders with unpaid mortgage loan balances on the property after the sale. The old law provided debt deficiency protection from the primary (1st) lien holder only, but not from junior a (2nd ) lienholder, who could still sue the borrower after the short sale. New Senate Bill 458 amends Code of Civil Procedure §580e to provide liability protection to qualifying property owners from ALL mortgage lenders, not just the first lender.
NEW LAW PROTECTS HOMEOWNERS FROM LIABILITY AFTER A SHORT SALE FOR THE UNPAID LOAN BALANCE ON THE FIRST DEED OF TRUST
Wednesday, October 13th, 2010Beginning January 1, 2011, any first trust deed lender who approves a short sale of a residential real property, will be prohibited by law from collecting the unpaid loan deficiency after the sale.
ADVISORY: THIS LAW WAS AMENDED ON JULY 15, 2012. SEE THE SLF LEGAL UPDATE DATED JULY 26, 2011.