short sale: SB 458, Senate bill 458 now CCP 580E - no deficiency after short sales in CA - 07/18/11 08:54 PM
Breaking News...
Short Sales in California just got easier... or did they?
With the passage of SB 458 into law California's legislature just ameded
CCP 580e to now releases hort sellers from the deficiency on junior liens.
580 already worked to release the deficiency or remaining loan balance on senior liens.
On its face this is probably a great amendment for upside down home sellers.
We are pretty sure this will have a positive overall effect for
upside down home owners but... there could be some downside.
We will discuss in future posts why it may be more … (3 comments)
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short sale: Short Sale update - Seconds are pursuing sellers and Realtors are being sued for giving legal advice - 01/10/11 05:41 PM
Two short sale reports today...
1. I know national short sale educators say that seconds are not going after the sellers after short sales. I have even spoken to the other half of one education team and told them I have clients who have been facing collection actions. Nevertheless they have continued with their assertion.
here is an email I just received via email on active rain...
HELOCs and short sales (Sent via Activerain)
This is offically no fun. Our short sale recorded (date withheld). I had reassurances for multiple people that our purchase money HELOC from Chase was … (6 comments)
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short sale: CA one step close to new non recourse loan law - 06/03/10 06:23 PM
CA SB 1178 just passed the CA senate on a re vote.
CAR thanked the 5000 Realtors who wrote letters to their State Senators.
Therefore, California is one step close to extending 580b to some refinanced loans.
As many of you know CCP 580b makes some home loans non recourse following a foreclosure. CCP 580b and non recourse loans after a foreclosure.
Ironically, if this bill were to be found constitutional it would probably encourage more strategic defaults and fewer short sales. (Because many lenders refuse to release the deficiency in writing.) The good news for Realtors … (0 comments)
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short sale: Short Sales - Citi and others are attempting to collect after the short sale - 11/11/09 01:12 PM
Lenders seem to stepping up their collections efforts after short sales.
Question / Comments: I just completed a short sale on my house in Corona, CA and Citibank is the second on the house is coming after me even though the house is sold and I am insolvent. What should I do? Info Request: Short Sale
Answer:
The first thing I would do is go over all the documents and communications involved in your transaction and recreate the terms of the deal.
There is a chance you were released from the remaining loan balance in writing.
Some lenders provide … (1 comments)
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short sale: Bank of America Short Sale - May Release your deficiency in Certain circumstantces - 10/09/09 07:14 PM
It took 14 months but last week we got an approval from BofA. The initial approval carried the usual Bank of America language.... BofA and its investors reserve the right to pursue the deficiency - Standard Bank of America short sale language
I called up our negotiator and left a message in my nicest tone:
1. Thank you for the approval- I appreciate your effort and attention.
2. As you know this is a CCP 580 b protected loan. I said, we already negotiated away the second lien and loan on with a short pay and therefore the other … (5 comments)
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short sale: Lenders pursuing sellers for deficiencies after short sales - 05/08/09 02:44 PM
Did you see the headline in our emails today from Realtor magazine?
"Lenders Chase short sale sellers"
The Wall Street Journal quoted Bank of America, HSBC and other lenders and they
The take away from the article is the the lenders look at a number of factors before they start to collect.
http://online.wsj.com/article/SB124104990739271023.html
For more information about short sales and relief from a deficiency go to www.FavoriteRealEstate.com or UpsideDownRealEstate.com
… (1 comments)
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short sale: How does a short sale effect Credit - short sale vs foreclosure - 04/30/09 02:06 PM
There seems to be a growing consensus among the Mortgage lenders and loan brokers that a short sale is just as damaging as a foreclosure to a persons credit. FICO reports a short sale will drop your credit score just as much as a foreclosure. Does that mean everyone who said short sales preserve you credit are wrong? (I am thinking back to those billboards and direct mail pieces I have seen where the lead was SAVE YOUR CREDIT.) I think it depends on the context. There may still be some benefits to a short sale: 1. Fannie Mae and Freddie … (2 comments)
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short sale: Taxes due on cancelled debt to the California Franchise Tax Board, loan forgiveness - 06/17/08 08:40 PM
How will California tax an upside down property owner?
I get this question so often I thought I would tell you what we know. Please have all lawyers and non lawyers put their explanations in writing. Very few people seem to understand this subject or the fact that California is only a non judicial or non recourse state for certain loans. Frankly, I do not understand what someone is trying to say when they say we are a non judicial state? Do you?
Taxes due on canceled debt ot the Franchise tax board.
1. Note Federal Loan forgiveness does not … (1 comments)
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short sale: Short Sale - What to do with a Seller's financials - 10/05/07 12:27 PM
I attended a short sale seminar last week and one of the agents brought up a very good question.
She said that when preparing the short sale package for lender she asked her seller to speak with a lawyer and determine whether the clients had to worry about her 401 K and other assets being attacked.
The lawyer wrote an opinion letter to the client saying that none of her assets could be attacked by creditors.
Question should the Realtor advise the client to turn over her financial information to the bank?
1. First issue (something I always consider) - will any of this … (6 comments)
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short sale: Does a Notice of Default have to be filed before advertising a short sale - 10/01/07 08:27 AM
Is it required that a property already have a notice of default filed in order to advertise the property as a 'short sale'? I'm interested specifically in California law. Thanks!
I can see the logic of the question. It is possible your local "MLS" will have a rule regarding how you may enter upside down properties, but in my opinion and experience working with multiple agents with multiple MLS systems there is no such restriction.
In my opinion homeowners should start on the process as soon as they know they are going to miss payments. Just recently I have even had preliminary … (10 comments)
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short sale: Short sale disaster narrowly avoided - 08/15/07 06:39 PM
Today I met with a man in San Diego who has a significant income and a property up in northern CA (his former home) his Realtor can't sell at or near the listing price.
His property is upside down. He has a first and a second loan. (His first is purchase money and there is some ambiguity as to whether his second is non recourse) He has the property listed with a Realtor for less than he owes. Any offers he has had are significantly below the listing price. The man is very concerned about his credit.
A few weeks ago … (5 comments)
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short sale: Short sale - information you may need - 06/23/07 07:12 PM
Another quote from the article "How to succeed in short sales" form Realtor.org will be presented below.
1." Other sellers simply don’t understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe, says Steve White, broker with Keller Williams VIP Properties, Santa Clarita, Calif."
--
Notes on this quote
a. Who informed the Lender of these other assets. As a Realtor would anyone advise the homeowner to turn over information about assets to the lender?
With this … (3 comments)
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short sale: More short sale information for Realtors and homeowners. - 06/23/07 05:45 PM
I observed a short sale training class yesterday for Realtors. It was eye opening. I am going to discuss some issues which were not resolved.
(I thank the previous posters who left comment and I hope to see more. I welcome posts which challenge me, as we can always learn more.)
1. Should an upside down homeowner consider offering a deed in lieu of foreclosure.
When?
Why?
May a Realtor counsel a homeowner on this subject.
If not, might a Realtor open themselves up for a law suit if the short sale is not accepted.
Why?
… (0 comments)
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short sale: Are Short Sale Advisors practicing law without a license - 06/19/07 12:25 PM
Here is a quote from a Realtor.Org article seemingly meant to educate Realtors on how to do short sales.
In read this in an article from Realtor.org.
"Question
What financial or credit liabilities will a seller have as a result of a short sale?Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.It’s … (8 comments)
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