BLOG SERIES - Short Sale FAQ's #8 - "What Will I Owe the Bank" by Rocklin Short Sale Real Estate Agent Ken Patterson
As a Rocklin Short Sale Listing agent, I get many questions regarding the process, lenders, what course of action should be taken... There are an endless number of questions that come up. So, I decided to start a BLOG series regarding those Short Sale questions that I get asked. I'll try to paraphrase the question and provide the simplest answer I can.
That said, here is the next one that I get from Sellers and the General Public a lot:
What will I owe the Bank after my Short Sale? ANSWER - Effective July 15, 2011, California has prohibited Junior Lenders (2nds, HELOCs, etc) from having any deficiency recourse claims against the borrower if the lender agrees to take part in a short sale. Gov. Jerry Brown signed SB 458 (Corbett) into law which only impacts 1 to 4 unit dwellings and it took effect immediately. California already prohibits lenders from having any further rights against a borrower if the lender forecloses or agrees to a short sale.
This law may or may not be beneficial to folks attempting to short sell their homes. Only time will tell. In the past, it has been my experience that generally both 1st and 2nd mortgage lenders that allowed a short sale would also grant the borrower (Seller) a release from any further obligation or recourse. Sometimes in order to get this agreement as part of the settlement, the seller would be asked to contribute a payment at close. This will no longer be an option for either lender or seller with this new law. Thus, options to successfully complete a short sale transaction may now be limited.
Ken Patterson with TEAM Patterson Realty at Keller Williams
We are proven Short Sale Rocklin Specialists
916-751-1800 or visit www.TEAMPattersonRealty.com for more information on us!
Do you have an Underwater Mortgage or are you thinking about a Short Sale Rocklin? We can help you short sale your home and we negotiate directly with your bank.
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