I Found An Attorney's Short Sale Website That Talks About A New Law In California That, As Of July 1, 2009, Supposedly Limits Negotiating Short Sales To Attorneys ONLY. It Says That From July 1 On, All Short Sales Have To Be Negotiated By Attorneys And Not Realtors.
Is This True?

No. There has been a good deal of misinformation put out of late regarding this law by attorneys looking to get into the Short Sale business. We recommend you be very wary of any attorney trying to distort or interpret the law for his or her advantage.

The California Foreclosure Consultant Act (July 1 2009) applies to foreclosure consultants-those who collect an advance fee for modifying loans or helping borrowers avoid foreclosure in situations where a Notice of Default has been filed on the property. This Act has an exclusion in it for licensed real estate agents.

Per Ca Civic Code and the Ca Assoc of Realtors, The California Foreclosure Consultant Act does not apply to real estate agents facilitating a Short Sale except in the extremely unusual event that a agent is 1) Making a direct loan for a residence in foreclosure, 2) Acquiring an interest in a residence in foreclosure, 3) Receiving an advance fee before performing services for a residence in foreclosure, or 4) Assisting an owner in obtaining the remaining proceeds if any from a foreclosure sale of an owner's residence.

That's it. 99% of the Short Sales in CA have always been, and continue to be, negotiated and completed by licensed Realtors, not attorneys.

California State Law