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.