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Tag: Short Sale
California Expands Mortgage Deficiency Protections in Short Sales
Last year, California passed a law that prohibits first mortgage holders from pursuing individual homeowners for a deficiency after a short sale. However, this meant that second and third mortgage holders were still free to sue the homeowner for the balance due even if they consented to the sale, unless the short sale documents themselves [...]
Lenders Suing Borrowers for Deficiencies in California
I am finding that more and more lenders are suing borrowers for deficiencies on their second mortgages in California. Citimortgage was the first and most aggressive, it appears that Wells Fargo and National City have joined the bandwagon.
A deficiency is created when there is a short sale or a foreclosure and the lender is [...]