California Code of Civil Procedure section 580e prohibits all mortgage holders from seeking a deficiency judgment in any transaction where they have provided written consent to a short sale. This has added significant protections to California’s current anti-deficiency laws (e.g. CCP 726, 580d and 580b) when dealing with short sale transactions.
This law provides far more relevant protections for borrowers seeking a short sale than the existing anti-deficiency laws. The new 580e is the saving grace for those borrowers seeking a short sale with a cash-out refinance loan.
Although this is great news for homeowners, there are serious questions about the implementation of the new law. Homeowners are strongly encouraged to seek the advice and counsel of a real estate attorney before even considering a short sale. You can get free legal representation in your short sale by engaging Lawyers Realty Group to handle the marketing and selling of your home.
There are serious legal and tax consequences related to CCP 580e. Please see other resources at www.LawyersRealty Group.com related to a traditional realtor’s inability to protect you during a short sale. You need an Attorney/Realtor® to fully examine and evaluate your exposure and protect your interests.