Walk Away from Your Short Sale without a Deficiency!
The law against Short Sale deficiencies was expanded as Governor Brown signed into law Senate Bill 458 which prohibits a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.
What does this mean to the person who owes more on their home than it’s worth? It means you may be able to walk away from your short sale without a deficiency. Contact Vickie Nagy at (925) 407-7987 to discover the impact this new bill can have on your financial freedom.
Vickie Nagy: (925) 407-7987 or email: Vickie@VickieSellsHomes.com
Steve Nagy: (925) 407-7853 or email Steve@BestTriValleyHomes.com Vickie and Steve Nagy are available to help you with all your real estate needs, including relocation to San Ramon CA, Dublin CA, Pleasanton
CA, Danville CA & nearby.
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Vickie Nagy CA DRE Lic. # 01363932 * Steve Nagy CA DRE Lic # 01863790 BMC Real Estate | 4115 Blackhawk Plaza Cir, Suite 100, Blackhawk, CA 94506
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