With the passage of SB 931 and SB 458, California sellers of residential property no longer have to worry about lenders going after them for money owed after the short sale closes.  SB 458 reinforces protections given by the previous law, SB 931, which only requires the first lien holder in a short sale to accept an agreed upon payment as the full payment of an outstanding loan balance. The new law, SB 458, now prohibits secondary lien holders from pursuing deficiencies after a short sale closes escrow.