Tim Krueger and Associates
Senate Bill 458
Another Layer of Protection for Homeowenrs
I just recieved some fantastic information from my title rep today. Sentate Bill 458 was signed by Gov. Jerry Brown of California and is already effective. The new law states "California law that further protects homeowners from first and second lien holders from going after sellers for money owed after the short sale closes" This is great news and it seems that our legislators are finally trying to help California homeowners.
A short sale is a transaction in which the homeowner owes more on the loan than the property is worth. To sell the homes, the lien holder or lien holders must approve the sale because the amount owed to the lien holder will be "short" of what is currently owed by the borrower.
This new bill, Senate Bill 458, is a victory for California homeowners who wish to short sale their property now can know without a doubt the lien holders cannot purse them once the home sales.
I quote "SB 458 brings closure and certainty to the shore 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 oustanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property" Beth L. Peerce CAR President
If you are thinking about a short sale and would like more information contact: