Over the last year, homeowners in the Orange County area and all over California have chosen top Orange County realtors to help them go through the short sale process because, they recently experienced financial hardship due to reasons like: unemployment, extended deployment in the military, high medical bills or possible incarceration. The difference between homeowners who have enjoyed the benefits of the short sale process within the last year compared to those homeowners who went through the short sale process before 2011 is the Anti-Deficiency Law which was signed by Governor Arnold Swarzenegger towards the end of 2010.
How Does SB 931 Help Homeowners?
With SB 931 every homeowner in California who decides to choose the short sale process will benefit because, once their short sale is approved, their lender will not have the right to go after them in court, to obtain a deficiency judgment, for any shortfall or balance due that remains on their mortgage.
Before SB 931 was signed into law, millions of homeowners all over California faced the harsh reality that the nightmare with their lender was not over when their lenders pursued them in court for an anti-deficiency judgment but, thanks to this bill, homeowners will receive protection and the lender must accept the proceeds from the short sale and agree that they been paid in full.
Does It Protect Every Loan?
Unfortunately, homeowners who have junior loans or second third mortgages are not protected under SB 931 and those lenders who have lent them the money for those mortgages have the right to sue them in court to obtain the remaining balances on second or third loans.
Thanks to SB 931, more homeowners are choosing the short sale option than ever before instead of just letting her homes slide into foreclosure because, short sale will protect the homeowner’s credit and enable that homeowner to avoid bankruptcy, foreclosure and enjoy the possibility of purchasing another home within four years or less.
To find out if you qualify for short sale or not, contact a top Orange County Realtor today or call Fred Sed & Associates at (949)272-0125 to learn more about how we can help you.