Short Sale Sign

Mortgage Collections After a Short Sale in California are Illegal

California is a "non-recourse" State. That means that banks who lend you money to buy a home - no matter how big of a mortgage you sign - are stuck with ONLY getting the house if you default. And that's it - NO more. They can't go after you for the difference in $$ between what the house sold for at auction and the amount still owing on the mortgage. It's over!

That goes for Short Sales too. A short sale is where the bank agrees to let you sell your home for less than what's owed and by law in California, the bank has to the eat the difference between the sale price and the mortgage amount.

J.P. Morgan Chase tried to argue that California's "non-recourse" law didn't apply to short sales but in 2016, the California Supreme Court beat them down in no uncertain terms.

So, if you short sold your house in California and your mortgage lender (or someone they hired) is trying to come after you for more money (and/or reporting to the credit bureaus that you owe), you may have a case against them for illegal debt collection that could entitle you to compensation!

Save up all of your documents and request a Free Case Evaluation immediately. I take these cases on a contingent fee basis, which means that we don't get paid unless you get paid!

And feel free to reach out, call, or post questions below if you'd like to have them answered.

Michael F. Cardoza, Esq.
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U.S. Marine & Consumer Financial Protection Attorney helping victims of ID theft and Credit Reporting errors.
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