Under a new state law, any lender who agrees to a short sale,
which by definition will yield insufficient funds to cover the
outstanding loans on a property, must accept it as payment in
full for all loan balances. That is a good thing for upside-down
homeowners who need to sell, says the California Association of
Realtors.  "The signing of this bill is a victory for California
homeowners who have been forced to short sell their home only to
find that the lender will pursue them after the short sale
closes, and demand an additional payment to subsidize the
difference," said association President Beth L. Peerce.  "SB 458
brings closure and certainty to the short sale process and
ensures that once a lender has agreed to accept a short sale
payment on a property, all lien holders -- those in first
position and in junior positions -- will consider the outstanding
balance as paid in full and the homeowner will not be held
responsible for any additional payments on the property," she
added.