Wednesday, July 20, 2011

SB 458 Short Sale Law - What does it mean?

Last week Gov. Jerry Brown signed SB 458 into law. So what exactly does that mean to you? The new law requires all lenders that agree to a short sale, must accept the agreed upon sales price as payment in full. This applies to both first and second mortgages. Last October, California enacted SB 931 where first lien holders were prohibited from going after short sale sellers for any debt deficiency after they accepted the short sale. SB 931 did not apply to junior lien holders. So with the new law both primary and secondary lenders that accept a short sale must accept the sales price as payment in full. SB 458 includes an urgency clause that makes it effective immediately.


If you were holding off on doing a short sale for fear of having to pay the difference, you should now reconsider short selling your home. If you are struggling with your payment, behind on payments and on the verge of foreclosure, please give me a call. I have discretely assisted sellers with homes for sale in Alpine, El Cajon, Jamul, and many other areas of San Diego county. While a short sale may not be what you really want, it may be a better alternative to foreclosure.  If you would like to search local real estate to compare prices of homes simalar to yours, feel free...Property Search.

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