With the large number of distressed properties in the market, our law system is continuously trying to help these distressed property owners. There is good news for house owners listing their property for short sale in California. As per a new law, any lender who approves a short sale must accept the received payment as the compensation for all the previous mortgage amount held on the property. It is a great relief for house owners with upside down properties and looking to initiate a short sale process.
As per previous laws, even if the first lender has agreed for compensation of the mortgage with short sale price, the secondary lender had the authority to hound the seller for left over balance. This law is definitely a great help for house owners who are planning for a short sale in this rough real estate market.
According to the law, once the primary lender agrees for a short sale, all the lien holders must accept the amount as the final compensation to be paid by the seller for the property under consideration and there will not be any additional payments required from seller’s side. So the seller can conduct a short process without any further worries of lenders hovering around their heads.
Moment of Concern for Potential Homebuyers: Fannie Mae and Freddie Mac are lowering the limit for loan for homebuyers by the end of the year which means that the cost of house ownership will get much higher in the upcoming months. Moreover the loan approval process is supposed to experience some strict changes including a larger down payment to be made on part of the buyers.
Best advice for homebuyers looking to purchase a new house is to hurry up and close the deal before the November this year. With new loan limits under section, it will be a lot difficult for homebuyers to purchase a home above 1 Million. The buyers are further expected to pay larger interest rates in the upcoming time. So get ready and start your home buying process today itself!
Comments (0)Subscribe to CommentsComment