New Law Senate Bill 458 Now Protecting Home Sellers Who Short Sale - No Deficiency!
Yes, there is a new law created to help Home Sellers who Short Sale - No Deficiency!
Just read about this new law (Senate Bill 458), protecting Home Sellers doing Short-Sales. Found it on the CAR website. It's a very interesting topic to many!
LAW AGAINST SHORT SALE DEFICIENCIES...
Governor Brown signed into law yesterday, July 15, 2011.
A C.A.R.-sponsored bill, Senate Bill 458 is really going to help both Home Sellers and Realtors. This Senate Bill prohibits a deficiency after a short sale for one-to-four residential units (single family residences). This means that the new law Senate Bill 458 is now protecting Home Sellers who Short Sale - No Deficiency!
And it doesn't matter whether the lender is a senior or junior lien holder. That means, it doesn't matter if it's the "First" Lender or the "Second" Lender on the property - or both - who accept a settlement for less than they are owed. Both senior and junior lien holders cannot require a borrower to owe or pay for a deficiency in a short sale.
This new law is effective immediately for home sales closing escrow from this day forward.
Another added benefit is, this law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale takes place. Hallelujah!
Take a look at the full Bill at the following link...
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0451-0500/sb_458_bill_20110715_chaptered.html
So now we can breath a little easier knowing about the new law Senate Bill 458 Now Protecting Home Sellers Who Short Sale - No Deficiency!
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