Articles from July 2011

NEW LAW PROTECTS HOMEOWNERS FROM LOAN LIABILITY AFTER A SHORT SALE

Tuesday, July 26th, 2011

As 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.

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DRE TAKES ACTION AGAINST BROKER FOUND LIABLE FOR FRAUD IN MISREPRESENTING THE SQUARE FOOTAGE OF A RESIDENCE

Tuesday, July 12th, 2011

Where a civil judgment for fraud based on misrepresentation of the square footage of a residence was entered in favor of a buyer against his real estate broker the broker’s real estate license may not be suspended by the Department of Real Estate unless the judgment is based on “clear and convincing” proof of fraud. Grubb Company Inc. v. Department of Real Estate 194 CA 4th 1494 (2011).

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