Sacramento Report
February 16, 2010
Deficiency Judgment Bill Introduced
Senate Bill 931, by Senator Ducheny, prohibits a deficiency judgment under a note secured by a first deed of trust where the trustor sells the dwelling for less than the remaining amount of the indebtedness with the written consent of the first deed of trust holder. The written consent is deemed to be acceptance by the beneficiary of the sale proceeds as full payment. The remaining amount of the indebtedness on the first deed of trust is considered fully discharged.
