Sacramento Report
March 15, 2011
Short Sale Anti-Deficiency Clarified
Senator Vargas has introduced SB 412, a California Bankers Association sponsored bill correcting unintended consequences resulting from the enactment of SB 931 (Ducheny). Senate Bill 931 was intended to provide anti-deficiency protection for short sales. SB 412 was introduced to preserve the intent of SB 931 by leaving intact the anti-deficiency protections extended to consumers when there is an agreed to short sale while clarifying that SB 931 does not impact commercial loan transactions.
