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New Law provides Anti-Deficiency Protection For Borrowers Short Sale Homes

On October 1, 2010 Governor Schwarzenegger signed California Senate Bill 931 into law.  This new law adds Section 580(e) to the California Code of Civil Procedure.  While this is great news for borrowers insisting on a short sale, it only applies to the first mortgage.  Existing law, CCP 580(d) does not allow a deficiency for [...]

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Discharge A Second Mortgage

Discharge A Second Mortgage In A Sacramento Bankruptcy

Discharging a Second Mortgage is possible in a Chapter 13 Bankruptcy.  When the value of a home is less than the senior encumbrances, the bankruptcy court may find that a secured loan is unsecured and treat it as a wholly unsecured loan, and discharge the junior secured loan (commonly called a “lien-strip”). For example, a [...]

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Hamilton V Lanning Decision

The  SUPREME COURT OF THE UNITED STATES recently ruled that when a bankruptcy court calculates a debtor’s projected disposable income, the court may account for changes in the debtor’s income or expenses that are known or virtually certain at the time of confirmation.  The debtor’s had an unusual item of income, a severance payout from [...]

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Sacramento CA Bankruptcy

Sacramento CA Bankruptcy Is On The Rise

Sacramento CA Bankruptcy Filing is on the rise. Bankruptcy filing in the Sacramento Bankruptcy Court is on the increase. In the first four months of 2010 Bankruptcy filings for Chapter 7 Bankruptcy in Sacramento totaled 14,727.  That represents an increase of almost 30% from the 11,462 Chapter 7 cases filed in the same period in [...]

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