About 15 minutes into her latest public television program, “The Money Class”, Suze Orman advises that if you have a home equity line of credit (HELOC) and you do a short sale, you have a big problem. She explains the HELOC is recourse and that even if you do a short sale, the HELOC lender can still come after your personal assets. Suze is wrong…at least in California. And her mistake could make all the difference in whether or not you decide to do a short sale.
I’m going to give Suze the benefit of the doubt and assume she recorded this program before California law changed on this important issue back on July 15, 2011. But it is essential that anybody considering a short sale get an accurate understanding of this new law (if you want to find out how you can get legal help on your short sale at no charge, please contact me at [email protected]). Click here to read my article published in today’s North Bay Business Journal about this important new development affecting all California residential short sales and why every homeowner whose home is “under water” must understand the short sale option.