Monday, July 18, 2011

Short Sale Sellers ~ Good News that California SB-458 Signed Into Law

CA real estate law 

The CALIFORNIA ASSOCIATION OF REALTORS® sponsored CA Senate Bill 458 and is pleased that Governor Brown signed it into law on July 15, 2011.  

California 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. short sales - California law

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. 
However, that 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."

California SB-458 involving real estate short sales contains an urgency clause making it effective upon signing.

See text of SB-458 ~ new California anti-deficiency judgment law re short sales ~ click here.


Source of some of this information is the CALIFORNIA ASSOCIATION OF REALTORS®

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® ~ also now serving as a director at CALIFORNIA ASSOCIATION OF REALTORS® 

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Contact us about real estate and short sales ~ listing and selling of homes and properties at Orange County, California. 

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