The real estate market is still weighs heavily in favor of the buyer. However if you or a friend have fallen on hard times and have to short sale here is some good news for you!
Governor Jerry Brown signed SB 458 into law. SB 458 extends the protections of SB 931 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, a 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.
The signing of this bill is a victory for California homeowners who have been forced to 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. 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 , all lien holders -those in first position and 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!
Finally a bit of good news for those in distress! Happy real estate hunting and now is a great time to find a bargain!