California Short Sale Lenders Must Now Allow Sale As Full Remittance

By
Real Estate Agent with The Homefinding Center CA BRE #01344132

Another public service bulletin... this one distributed by California Association Of Realtors...

CALIFORNIA ASSOCIATION OF REALTORS® Applauds Gov. Brown (personal note insert: there's not much you can applaud Gov. Brown on) on signing SB 458 into law
 
 LOS ANGELES (July 15) - The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law.   SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
 
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
 
"The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference," said C.A.R. President Beth L. Peerce.  "SB 458 brings closure and certainty to the short 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 outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property."
 
SB 458 contains an urgency clause making it effective upon signing.

Comments (2)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Cameron,  WE have been waiting patiently for this to happen  for some  time...thanks for sharing.

Sep 20, 2011 09:14 PM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

I would love for this to happen in Arizona!  Hopefully, we will follow!

Oct 28, 2011 04:23 PM