CONCLUSION
The bottom line to AB 273 is that lenders have only six (6) MONTHS to file a lawsuit for a deficiency judgment after either a short sale or foreclosure sale. That six (6) months applies to second mortgages. In other words after a short sale or foreclosure sale the lender only has six (6) months to come after you for the second mortgage.
The prior time for which to file a lawsuit was six (6) YEARS after completion of the short sale or foreclsoure sale. See my previous article on time limitations for filing deficiency judgment lawsuits.
If you purchaed your home before the 2009 cutoff date but you modified your loan would you then qualify under sthe AB273 Ruling?