"The Green Globe in Real Estate Servicing"
​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​
Help
Register
Bookmark Us
Yelp Us
call todayCall Today:949-852-4460

Is a second mortgage forgiven in a short sale?

A second mortgage or home equity line of credit is negotiated to be settled during the short sale process, so any debt from these would be forgiven. California law SB 458 benefits homeowners who wish to pursue a short sale and have a second mortgage or home equity line of credit. With a foreclosure, California law allows lenders to attempt collection or freezing of assets for the amount of debt from a second mortgage or home equity line of credit. When a homeowner completes a short sale, all second mortgage or home equity line of credit debt is considered forgiven, which means the lender cannot pursue you for any unpaid debt.

Related Questions

Other Common Questions

California Association of Realtors

Important Notice

The Mortgage Forgiveness Debt Relief Act expires at the end of this year. Don’t get caught paying tax penalties by waiting to short sell. Click here to learn more.


[calc id=440]
Looking for the estimated value of your home in this down market? We have the tools to help you: Home Value Calculator

Send to Friend

Email Agent