CA SB458- No Second Lien Deficiency with Short Sales

"Short sales in CA just became SO much more attractive! BUT CA lawmakers still they left a couple of holes for second lender which may make it harder for some agents (watch the video).

You know how SB931 that was passed last year made so many people confused and others excited? Well, SB458 [now known as CA CCP Section 580(e)] was just signed into law and is effective IMMEDIATELY and makes it so that ANY lender in CA who agrees to a short sale on a 1-4 unit property, MUST FULLY RELEASE THE SELLER OF THE DEFICIENCY.

This means that second lenders can no longer release only the lien if they agree to a short sale. This law was specifically written to INCLUDE the second lien holders that were left out of SB931/CA CCP 726(e).

This makes short sales SO much more attractive for those who own property in California, especially for those who are short selling a second home, investment property or a cash out loan on their primary residence.

There are however TWO LOOPHOLES for lenders to get MORE money that I talk about in this video."

Category:

Education

Tags:

• short sale
• deficiency
• second mortgage
• heloc
• second lien
• sb458
• california
• law
• real estate

[kerrinaslund1]

Thanks Trent! You are a Rock Star!

[1TrentChapman]

@kerrinaslund1 Yes, any transactions that closed escrow after July 15th, 2011

-Trent

[RobertPfeiler]

Yahoo. Thank you for the good news.

[kerrinaslund1]

Bo you know if this means any transactions closing escrow (approval letters already signed) after today or any transactions that get approval letters from this day forward.

Basicly, does this apply to short sales in escrow that have not closed yet?