Short Sale - San Diego Short Sale Experts (619) 631-4546

Great New if you want to short sale in California

July 19, 2011 By Simon

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.

How Long Does a Short Sale Take in San Diego or Los Angeles

A short sale can only be influenced after approval has been taken. But the quantity of time the approval will take is tough to guess.

Those banks who are in the short sales business believe the approval comes thru in twenty-one days from the time the details were provided about the short sale. Banks often end up in a tight spot when borrowers default on payments leading frequently to a foreclosure, or those whose payments are delayed due to varied reasons. The approval procedure in such cases gets inordinately delayed and it isn’t weird to find bottlenecks along the path, leading to backlogs extending for days, weeks and in a few cases, even months at a time. The short sale process is long and boring, requiring a detailed set of rules to be followed : one. At the outset, the householder must be approached to get details about all of the available documents that would need to be gained and sent to the bank. The time needed for this is rarely more than 2 days. Two. Next is the preparing of lists about the way to get the home prepared to be listed for sale. It also needs an appointment with the house owner to go to the home to get a first hand picture about the property. This is also a fast survey taking some days. Three. The 3rd stage starts when the estate agent starts to start to promote the spot for selling, getting in contact with possible buyers, advertising, and closing in one major buyer. This can take anything from some days to many months. Agencies usually start to get questions inside three to 6 weeks of the listing. Four. This is followed by the display that needs to be made to the bank about the offer. It is here the realtor’s experience in handling and arranging a short sale comes helpful. With previous experience many realtors may be able to complete the talks in as little as 2 weeks, but occasionally, a little oversight may drag the method to even 3 months. But a mean number of 30-60 days can be taken from the date of the offer sent to the bank to the time of short sale approval. This period comprises at least 60-90 calls, faxes and mails between the realtor and the bank. Five.

Eventually , the short sale approval from the bank in hand, it’s time for the purchaser to shut the home and move out. The majority are prepared with prior planning and can do so in 10-14 days though some may take 3 weeks. Short sales are not meant just for payment defaulters, as is sometimes said to be true for all foreclosed houses. Even people who have never defaulted on a single installment can make a short sale, thanks to the negative equity that they have for the present.

It becomes straightforward to short sell the house and get out of the tight money situation.