New Short Sale Law
18.07.2011
, Blog
Gov. Jerry Brown signed SB 458 (Corbett) into law. So now, 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. “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.”
Sincerely,
Barbara Reaume
Coldwell Banker
Real Estate Advisor GRI SRES CN SFR
Cell: (805) 610-5403
Fax: (805) 969-0262
https://www.barbarareaume.com
http://www.thesantabarbararealtor.com
Lic #00888832
