If you need to short sale in California, things just got a hole lot easier. All lenders that agree to accept a short payoff (short sale) must agree to record the sale as payment made in full of the loan amount. This is really good news for all California homeowners that may need to short sale there home. Troubled Property Solutions has been helping home owners with the short sale process since 2007, we offer a very discrete and private solution. Lender have started to really wake up to the fact that they need to move forward with short sales.
Gov. Brown signs SB 458 into law – LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
SB 458 contains an urgency clause making it effective upon signing.
This should help with the Short Sales.
