Is there a new foreclosure law stating a deficiency by a short sale on a primary residence is forgiven?

I keep hearing about a new law, that might be part of a presidential order, forgiving the short sale deficiency of a primary residence. Can someone provide confirmation of this new law? If so what are the guildlines, how does it work and what defines a primary residence according to this new law? Everyone who has shared this with me has been in the state of Arizona, is this new law only applicable there?

There is no law like that at the present time.

However I have been an activist in the Democratic Party for over forty years.

I have been agitating for changes in our mortgage lending laws for years.

I am currently working with a Democratic candidate for Congress.

We are trying to unseat a do nothing Republican Congressman and I think that we have a good chance of winning.

When we win, we will be holding hearings on this whole mortgage mess.

We will be proposing legislation that will do away with this mess, make the lenders much less arrogant and more willing to work with people.

Ther is no such law on the books, yet.

We will have a Democratic President, a Democratic Congress and a Democratic Senate.

The greedy Republican mortgage lenders have been living off the backs of the working people for much too much time.

The greedy Republican mortgage lenders will learn a lesson they will never forget when we take over the government in 2008.

The Republican creeps will go down in flames in 2008!!!!

I can't see a law like that existing w/o bankrupting the banks themselves.

There is no such law at this time, but there may be a proposed law.

Lets all pray that the government is not stupid enough to sign something like that.

You heard incorrectly about the new law. What WAS signed was a law making any such deficiency no longer taxable income. In the past, if the lender did not pursue the deficiency, the income could be reported on Form 1099 and had to be considered taxable income.

The new law says nothing about forgiveness of the deficiency. The lender still has the option of taking you to court to obtain a deficiency judgment.

There are options for anyone facing foreclosure and finding out the laws that apply to you. The changes in law are national not state oriented. 1-888-995-HOPE is a government hot line that may be able to give you all the answers you may need. If you are dealing with the threat of foreclosure you do have options. Good Luck to you!

A primary residence is the home that you live in... Not a rental that you rent out. You can go to the Dept of real estate and check out any new laws that have passed. The recent one having to do with foreclosures has certain criteria you need to meet.

http://www.dre.ca.gov/