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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Redemption & Deficiency in CA. Posted by Ward-CA- on May 29, 2003 at 8:43 PM In Reply to: Redemption & Deficiency posted by zachary on May 29, 2003 at 1:21 PM : Ward, : Just for clarification! : In the "50 state resource data" section of the this site. : it states that there is no redemption period and : Deficiencies are prohibited. : I know that the redemption period is in regards to a period of time after the trustee sale. : Question: : is the Deficiency regarding the discounted amount on a short sale? meaning if I short sale a property in a state that allows deficiencies then the lender has the right to go after the original seller for the deficiency amount? : If so then that is not possible in CA right? : I guess the lender probably still has to 1099 the seller for the deficiency amount, right? : thanks, : Zachary =•=•=•=•=•=•=•=•=•=•=•= Zachary, Yes, in CA there’s no right of redemption after the non-judicial sale for anyone except the IRS. And deficiencies are prohibited on the foreclosure of purchase money trust deeds but not for foreclosures of hard money loans or FHA and VA loans. #1. Deficiency doesn’t apply to a short sale that takes place prior to the trustee’s sale. A deficiency could apply to a short sale after the trustee’s sale where the lender was the highest bidder and at their final disposition of the property they received less than the balance owed on their loan. There was some suggestions in Congress to ameliorate the income tax consequences of debt relief as it relates to foreclosure sales. I don’t know if that ever resulted in a change in lenders sending out 1099’s any more or not. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Just for clarification! : : In the "50 state resource data" section of the this site. : : it states that there is no redemption period and : : Deficiencies are prohibited. : : I know that the redemption period is in regards to a period of time after the trustee sale. : : Question: : : is the Deficiency regarding the discounted amount on a short sale? meaning if I short sale a property in a state that allows deficiencies then the lender has the right to go after the original seller for the deficiency amount? : : If so then that is not possible in CA right? : : I guess the lender probably still has to 1099 the seller for the deficiency amount, right? : : thanks, : : Zachary : =•=•=•=•=•=•=•=•=•=•=•= : Zachary, : Yes, in CA there’s no right of redemption after the non-judicial sale for anyone except the IRS. And deficiencies are prohibited on the foreclosure of purchase money trust deeds but not for foreclosures of hard money loans or FHA and VA loans. : #1. Deficiency doesn’t apply to a short sale that takes place prior to the trustee’s sale. : A deficiency could apply to a short sale after the trustee’s sale where the lender was the highest bidder and at their final disposition of the property they received less than the balance owed on their loan. : There was some suggestions in Congress to ameliorate the income tax consequences of debt relief as it relates to foreclosure sales. I don’t know if that ever resulted in a change in lenders sending out 1099’s any more or not. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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