Governor Brown signed into law Senate Bill 458 prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or a junior lien holder. Effective immediately transactions closing escrow from this day forward, both senior and junior lien holders cannot require a borrower to owe or pay for a deficiency in a short sale. This law prohibits any deficiency judgment to be requested for senior or junior liens after a short sale of one-to four residential units. Any waiver of this rule shall be void and against public policy.  This new law does not prohibit a borrower from voluntarily offering a monetary contribution to lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives etc. A lender may also seek damages for a borrower’s fraud or waste.