New California Short Sale Deficiency Law
As of January 1, 2011, the first position lender will not be permitted to obtain a deficiency judgment against the seller after a short sale. The short sale approval letter and acceptance of the funds will constitute payment in full and discharge of the deficiency. However, these new changes will not apply to refinanced loans. If you are considering a short sale or would like to learn more feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form. Pat Holkesvig and Your Home Team are The Central Valley’s Short Sale Specialists. We process Stockton Short Sales, Elk Grove Short Sales, Lodi Short Sales, Lathrop Short Sales, Manteca Short Sales, Modesto Short Sales, Mountain House Short Sales and Tracy Short Sales.
Understanding Deficiency Clauses
Recently a seller let an approved short sale go to foreclosure over a deficiency clause. This is a situation where everybody loses, the seller, the buyer, their agents, the servicers and the lenders all who spend their time and money to negotiate the approval. All wasted over two little sentences.
“BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy.”
Initially the servicer, Bank of America, claimed that if there was Mortgage Insurance (MI) or a second lien on a file they couldn’t remove a deficiency clause. However, there was no MI on the loan and the second lien holder was a different lender who had already accepted the terms of approval. The seller consulted an attorney who advised him that unless the deficiency clause was removed from the approval, that he should go ahead and let the property foreclose. This would protect the seller from owing the deficiency since California is a nonrecourse state. Hoping to salvage the deal, the seller offered to pay a promissory note in lieu of the deficiency clause. This should have been a reasonable offer to Bank of America considering that according to an article by Jason Opland on Aug. 17, 2010
Bank of America’s previous Senior Vice President of Credit Loss and Loss Mitigation, Mr. Jack Schakett, stated that if a borrower proves he can no longer pay the mortgage and has a few or no assets, Bank of America will waive it’s right to a deficiency judgment during the processing of the short sale deal. But, if a borrower can afford to pay or has assets, the bank will try to negotiate a set fee for the borrower to pay at closing. “We want to help customers who legitimately can’t afford to make payments, but we don’t want the one’s who have a bunch of money to just be able to walk away. These individuals will have to share some of our loss.” Mr. Schakett acknowledged that short sales in which the bank agrees to accept less for the home than the balance of the loan are less expensive to process than foreclosures, and thus they want to encourage more homeowners to pursue this course by making it clear they do not intend to pursue homeowners for deficiency judgments.
However Bank of America didn’t get to make that decision because Freddie Mac who held the note would not allow it. The negotiator responded saying the investor would not accept the promissory note and refused to remove the deficiency clause. They pointed out that the approval letter states the deficiency clause can be enforced “unless agreed otherwise or prohibited by law” and that California won’t allow it. This isn’t entirely true. The current statutes prohibiting deficiency judgments only pertain to foreclosures, not short sales. SB 931 which would prevent deficiencies on short sales, has not been signed into law by the governor. He has until September 30, 2010 to do so. Even then, we don’t know when the law will take effect, likely after January 1, 2011. This means if the seller had completed the short sale with the deficiency clause intact he would’ve been at risk of Bank of America coming after him for the deficiency until the statute of limitations had passed (about four years). Based on this information the seller decided to follow the advice of his attorney and let the property foreclose and be protected from the lender pursuing the deficiency judgment.
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Lodi, CA, Short Sale, Lodi Home for Sale & Lodi Real Estate, 927 Comanche Way, Lodi, CA, 95240
For information on this and all the Lodi homes for sale visit www.Homes-In-Stockton.com!
Great 3 bedroom, 2 bath Short Sale home located in Lodi. Well cared for home features dual pane windows, large backyard, covered patio and 2-car garage. Perfect starter home or investment property!
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Lodi Short Sales
Pat Holkesvig specializes in processing Lodi short sales. The following are the Short Sales currently on the market in Lodi. Click here to view all the homes for sale in Lodi.
| Address | Status Desc |
| 1001 Edgewood Dr Lodi, CA 95240-0519 | Active Lodi Short Sale |
| 1013 Dartmoor Cir Lodi, CA 95240-6607 | Active Lodi Short Sale |
| 1021 Woodrow St Lodi, CA 95240-4322 | Active Lodi Short Cont. |
| 1050 S Central Ave Lodi, CA 95240-5325 | Active Lodi Short Cont. |
| 1103 Brandywine Dr Lodi, CA 95240-7402 | Active Lodi Short Cont. |
| 11150 N Ham Ln Lodi, CA 95242-9450 | Active Lodi Short Cont. |
| 1123 Port Chelsea Cir Lodi, CA 95240-7034 | Active Lodi Short Sale |
| 116 Olive Ct Lodi, CA 95240-1225 | Active Lodi Short Sale |
| 11627 N Davis Rd Lodi, CA 95242-9543 | Active Lodi Short Sale |
| 11869 N Lower Sacramento Rd Lodi, CA 95242-9547 | Active Lodi Short Sale |
| 1233 S Sunset Dr Lodi, CA 95240-5531 | Active Lodi Short Cont. |
| 1239 Lakeshore Dr Lodi, CA 95242-3925 | Active Lodi Short Cont. |
| 129 Harvest Ln Lodi, CA 95242-8338 | Active Lodi Short Sale |
| 12974 Hibbard Rd Lodi, CA 95240-9314 | Active Lodi Short Cont. |
| 1311 W Century #17 Lodi, CA 95242 | Active Lodi Short Cont. |
| 1315 W Harney Ln Lodi, CA 95242-4500 | Active Lodi Short Sale |
| 1334 Arundel Ct Lodi, CA 95242-4501 | Active Lodi Short Cont. |
| 14 Sleepy Hollow Dr Lodi, CA 95242-9441 | Active Lodi Short Sale |
| 1418 S School St Lodi, CA 95240-6243 | Active Lodi Short Cont. |
| 1523 Lexington Dr Lodi, CA 95242-4782 | Active Lodi Short Cont. |
| 15651 Linn Rd Lodi, CA 95240-9203 | Active Lodi Short Cont. |
| 1607 W Locust St Lodi, CA 95242-2944 | Active Lodi Short Cont. |
| 1619 Mariposa Way Lodi, CA 95242-2534 | Active Lodi Short Sale |
| 1619 Providence Way Lodi, CA 95242-4746 | Active Lodi Short Sale |
| 1628 Remington Way Lodi, CA 95242-4740 | Active Lodi Short Cont. |
| 16736 N Alpine Rd Lodi, CA 95240-9332 | Active Lodi Short Sale |
| 1707 Burgundy Dr Lodi, CA 95242-4513 | Active Lodi Short Sale |
| 1711 Providence Way Lodi, CA 95242-4745 | Active Lodi Short Sale |
| 17111 N Bruella Rd Lodi, CA 95240 | Active Lodi Short Sale |
| 1713 S School St Lodi, CA 95240-6281 | Active Lodi Short Cont. |
| 1721 Corbin Ct Lodi, CA 95242-3410 | Active Lodi Short Sale |
| 1722 Victoria Dr Lodi, CA 95242-4792 | Active Lodi Short Sale |
| 1741 Cape Cod Cir Lodi, CA 95242-4202 | Active Lodi Short Cont. |
| 1741 Reisling Dr Lodi, CA 95240-6185 | Active Lodi Short Cont. |
| 1819 S Cherokee Ln #54 Lodi, CA 95240-6360 | Active Lodi Short Cont. |
| 1824 Cape Cod Cir Lodi, CA 95242-4207 | Active Lodi Short Cont. |
| 1837 Winding Oak Lodi, CA 95242-4464 | Active Lodi Short Sale |
| 1863 Lakeshore Dr Lodi, CA 95242-4230 | Active Lodi Short Sale |
| 1870 Dove Ct Lodi, CA 95240-8860 | Active Lodi Short Sale |
| 1910 Reisling Dr Lodi, CA 95240-6117 | Active Lodi Short Cont. |
| 1945 Jamestown Dr Lodi, CA 95242-4706 | Active Lodi Short Sale |
| 19783 Atkins Rd Lodi, CA 95240-9715 | Active Lodi Short Sale |
| 2016 Jerry Ln Lodi, CA 95242 | Active Lodi Short Cont. |
| 2019 W Elm St Lodi, CA 95242-2820 | Active Lodi Short Sale |
| 2032 Gateway Cir Lodi, CA 95240-6729 | Active Lodi Short Cont. |
| 2040 Incline Dr Lodi, CA 95242-4765 | Active Lodi Short Cont. |
| 205 Cherry St Lodi, CA 95240-4803 | Active Lodi Short Sale |
| 2053 Katnich Ln Lodi, CA 95242-4805 | Active Lodi Short Cont. |
| 2054 Providence Way Lodi, CA 95242-4756 | Active Lodi Short Cont. |
| 2056 Mammoth Lodi, CA 95242 | Active Lodi Short Sale |
| 2059 Katnich Ln Lodi, CA 95242-4805 | Active Lodi Short Cont. |
| 2062 Mammoth Way Lodi, CA 95242-4763 | Active Lodi Short Cont. |
| 2080 Holt Dr Lodi, CA 95242-4812 | Active Lodi Short Cont. |
| 209 E Oak St Lodi, CA 95240-2915 | Active Lodi Short Cont. |
| 2090 Wyndham Way Lodi, CA 95242-4807 | Active Lodi Short Cont. |
| 2107 Jerry Ln Lodi, CA 95242-2840 | Active Lodi Short Sale |
| 2136 Starling Way Lodi, CA 95240-7892 | Active Lodi Short Cont. |
| 219 Rainier Dr Lodi, CA 95242-2624 | Active Lodi Short Cont. |
| 2209 Jackson St Lodi, CA 95242-3118 | Active Lodi Short Sale |
| 2209 Lupine Ct Lodi, CA 95242-4115 | Active Lodi Short Sale |
| 2214 Sun Valley Dr Lodi, CA 95242-4753 | Active Lodi Short Sale |
| 2239 Olson Dr Lodi, CA 95242-4797 | Active Lodi Short Cont. |
| 224 Daisy Ave Lodi, CA 95240-1106 | Active Lodi Short Sale |
| 2250 Scarborough Dr #15 Lodi, CA 95240-6645 | Active Lodi Short Cont. |
| 2306 Giannoni Way Lodi, CA 95242-4795 | Active Lodi Short Cont. |
| 231 Mission St Lodi, CA 95240-5318 | Active Lodi Short Cont. |
| 2318 Medallion Way Lodi, CA 95242-4749 | Active Lodi Short Cont. |
| 2322 W Turner Rd Lodi, CA 95242-2164 | Active Lodi Short Cont. |
| 236 Dunsmuir Dr Lodi, CA 95240-6310 | Active Lodi Short Sale |
| 2400 Eilers Ln #1503 Lodi, CA 95242 | Active Lodi Short Sale |
| 2401 Eilers Ln #1003 Lodi, CA 95242-9149 | Active Lodi Short Cont. |
| 2401 Eilers Ln #1007 Lodi, CA 95242 | Active Lodi Short Cont. |
| 2401 Eilers Ln #103 Lodi, CA 95242-9147 | Active Lodi Short Cont. |
| 245 Hilborn St Lodi, CA 95240-4141 | Active Lodi Short Cont. |
| 247 Arcadia Pl Lodi, CA 95240-8891 | Active Lodi Short Sale |
| 2508 Mercato Ln Lodi, CA 95240-8908 | Active Lodi Short Cont. |
| 2535 Potomac Way Lodi, CA 95242-4770 | Active Lodi Short Sale |
| 2551 Douglas Fir Dr Lodi, CA 95242-8315 | Active Lodi Short Cont. |
| 26 S Ham Ln Lodi, CA 95242-3001 | Active Lodi Short Sale |
| 2923 Applewood Dr Lodi, CA 95242-8318 | Active Lodi Short Cont. |
| 312 Chestnut St Lodi, CA 95240-4018 | Active Lodi Short Cont. |
| 312-1/2 Flora St Lodi, CA 95240-4117 | Active Lodi Short Cont. |
| 321 Rainier Dr Lodi, CA 95242-2627 | Active Lodi Short Sale |
| 340 Eden St Lodi, CA 95240-4112 | Active Lodi Short Cont. |
| 35 Genie Way Lodi, CA 95242-2835 | Active Lodi Short Sale |
| 361 Valley Ave Lodi, CA 95240-7888 | Active Lodi Short Cont. |
| 398 Valley Ave Lodi, CA 95240-7891 | Active Lodi Short Sale |
| 400 Almond Dr Lodi, CA 95240-7822 | Active Lodi Short Sale |
| 401 S Central Ave Lodi, CA 95240-4103 | Active Lodi Short Sale |
| 412 N School St Lodi, CA 95240-1229 | Active Lodi Short Cont. |
| 417-1/2 Flora St Lodi, CA 95240-4209 | Active Lodi Short Sale |
| 437 Porta Rossa Way Lodi, CA 95240-8905 | Active Lodi Short Cont. |
| 442 Hummingbird Dr Lodi, CA 95240-7816 | Active Lodi Short Cont. |
| 445 Almond Dr #77 Lodi, CA 95240-6369 | Active Lodi Short Sale |
| 445 Massarosa Ln Lodi, CA 95240-8901 | Active Lodi Short Sale |
| 448 San Pietro Ln Lodi, CA 95240-8903 | Active Lodi Short Sale |
| 449 Tuscolana Way Lodi, CA 95240-8914 | Active Lodi Short Sale |
| 500 N Sunset Dr Lodi, CA 95240-1630 | Active Lodi Short Sale |
| 506 N Sunset Dr Lodi, CA 95240-1630 | Active Lodi Short Sale |
| 507 Sacramento St Lodi, CA 95240 | Active Lodi Short Sale |
| 510 W Cardinal St Lodi, CA 95240-5611 | Active Lodi Short Cont. |
| 513 W York St Lodi, CA 95240-5233 | Active Lodi Short Sale |
| 516 Perlegos Way Lodi, CA 95240-8879 | Active Lodi Short Sale |
| 516 Tuscolana Way Lodi, CA 95240-8912 | Active Lodi Short Sale |
| 518 Massarosa Ln Lodi, CA 95240-8902 | Active Lodi Short Sale |
| 519 Hilborn St Lodi, CA 95240-4203 | Active Lodi Short Cont. |
| 520 Windsor Dr Lodi, CA 95240-5228 | Active Lodi Short Cont. |
| 522 E Pine St Lodi, CA 95240-3034 | Active Lodi Short Cont. |
| 527 Tuscolana Way Lodi, CA 95240-8912 | Active Lodi Short Sale |
| 540 Daisy Ave Lodi, CA 95240-1012 | Active Lodi Short Cont. |
| 610 S Washington St Lodi, CA 95240-4138 | Active Lodi Short Sale |
| 613 Corfino Ln Lodi, CA 95240 | Active Lodi Short Sale |
| 621 Rimby Ave Lodi, CA 95240-6013 | Active Lodi Short Sale |
| 65 W Armstrong Rd Lodi, CA 95242-9595 | Active Lodi Short Cont. |
| 700 Mccoy Ct #3 Lodi, CA 95240-8103 | Active Lodi Short Sale |
| 716 Live Oak Way Lodi, CA 95242-2056 | Active Lodi Short Cont. |
| 717 Westwood Ave Lodi, CA 95242-2460 | Active Lodi Short Cont. |
| 718 Park St Lodi, CA 95240-5221 | Active Lodi Short Sale |
| 728 James St Lodi, CA 95242-2207 | Active Lodi Short Sale |
| 752 Golden Ave Lodi, CA 95240-0651 | Active Lodi Short Cont. |
| 7999 Bella Vina Lodi, CA 95240-9520 | Active Lodi Short Cont. |
| 8 S Cambridge Dr Lodi, CA 95242-3212 | Active Lodi Short Sale |
| 801 S Rose St Lodi, CA 95240-4624 | Active Lodi Short Cont. |
| 811 Evergreen Dr Lodi, CA 95242-4686 | Active Lodi Short Cont. |
| 835 Daisy Ave Lodi, CA 95240-0937 | Active Lodi Short Cont. |
| 910 Rutledge Dr Lodi, CA 95242-2141 | Active Lodi Short Sale |
| 916 N Pleasant St Lodi, CA 95240 | Active Lodi Short Sale |
| 928 W Turner Lodi, CA 95242 | Active Lodi Short Cont. |
| 930 W Tokay St Lodi, CA 95240-3930 | Active Lodi Short Sale |
Stockton, CA Stockton Home for Sale & Stockton Real Estate, 4325 Boulder Creek, Stockton, CA, 95219
For information on this and all the Stockton homes for sale visit www.Homes-In-Stockton.com!
Nestled on the greenbelt, this pristine haven exudes elegance & charm! Featrng a frml liv space that xtnds to the intimite din rm, a sep fam rm w/ Frnch drs & glamorous mstr suite that dazzles w/ a newly remdld bthrm. The recntly compltd picturesque bkyrd is an opulent oasis unto itself, shwcasng a majestic pool & spa, adorned by a cascading wtrfall. Imprvmnts incl: 50yr roof, hi eff HVAC syst, tanklss water heater, paint, doors, plntatn shttrs, crwn mldng,
basebrds, lighting & much, much more!
