This week an incredible new law will take effect courtesy of California Governor Jerry Brown. SB 458 will protect sellers from the threat of ANY deficiency judgments from lenders who agree to approve a short sale. More specifically “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.” Read the rest of this entry »
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Los Angeles, CA–Many clients often ask us this question. They have decided that a short sale is right for them but would like to be able to save their credit and purchase another property again someday.
The good news is that contrast to foreclosure which would dictate that an owner wait 5-7 yrs before purchasing a home, a owner who chooses to short sale their property may only have to wait up to 3yrs under current lending guidelines. Read the rest of this entry »
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This is a typical question that we are asked nearly daily from our clients. The truth is that no homeowner actually has to be behind or late on making their payments when considering a short sale. The only criteria is that they owe more on their home that its actual current market value and that the homeowner has an actual verifiable hardship which will cause them to fall behind on their payments in the near future. Read the rest of this entry »
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One major concern most homeowners have about initiating a short sale on their home is the thought of being pursued after the short sale for a deficiency judgment by their lender.
A deficiency is the difference between the principal balance due and the amount received, providing the amount received is less than the amount owed. Read the rest of this entry »
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If you are currently a homeowner with 2 lenders servicing your mortgage, which was popular with 80/20 financing, short sale approval MUST be agreed to by both lenders. Often times the lender in 2nd place will receive a significantly small payoff from $1,000-10,000 at most. Sometimes these 2nd lien holders are not satisfied with the payoff amount and will demand the borrower, or sometimes the new buyer of the property, come out of pocket with several thousand dollars under the table. This is FRAUD and illegal.
See this latest news report on this type of illegal action taken by some banks:
Short Sale Fraud-CNBC NEWS
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