No Deficiency after Short Sale per CCP 21580e

A recent ruling from Judge Geraldine Mund.

United States Bankruptcy Court
Central District of California
Judge Geraldine Mund, Presiding
Courtroom 303 Calendar
San Fernando Valley

Tuesday, June 03, 2014 Hearing Room 303  10:00 AM

1:10-16066 Patrick F Kilbane Chapter 7
#5.00 Objection to Claim #1 Claimant PNC Bank
Docket 44

The PNC claim arose out of a second trust deed on the Debtor’s home. The
Trustee has abandoned the home back to the Debtor and in February 2013
the Debtor sold the house to a third party for $715,000, which was a short
sale.  The holder of the first lien accepted $647,016.89 and PNC agree to
accept $21,000, which was paid to it.  This constituted a reconveyance of the
PNC trust deed.
After the sale closed, PNC amended its claim from $203,876.02 secured to
$182,876.02 unsecured.

Effective 7/11, Cal. Code Civ Pro 21580e was amended to eliminate a real
estate seller’s personal liability for a short sale deficiency as long as certain
conditions are satisfied. These require a dwelling of no more than four units,
that the title was voluntarily transferred to a buyer by a recorded grant deed or
other document of conveyance, and that the proceeds of the sale were
tendered to the secured creditor. All of these conditions have been satisfied.

No opposition received as of 5/29. Grant

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