Posted over 13 years ago

SB 458-Excellent news for California homeowners who must short sale their home

SB 458

SB 458-Excellent news for California homeowners who must short sale their home

Kudos to California Governor Jerry Brown for signing SB 458 (Corbett) into law protecting California homeowners who must short sale their home from lenders pursuing them after the short sale closes.

What does SB 458 mean for you California homeowner?

In the past…

Under previous law (SB 931 of 2010), while a first mortgage holder (if you have two loans, this is usually the larger of the two) may accept a short sale as full payment for the outstanding balance of the loan, the rule did not apply to junior lien holders (the smaller of the two loans).

But now thanks to SB 458 …

When lender has agreed to a short sale on a home, SB 458 insures that all lien holders (the first and second loans) must consider the outstanding balance as completely paid off and the short seller (homeowner) will not be held responsible for any future payments on the home.

According to the California Association of Realtors, SB458 contains an “urgency clause” making it effective upon signing.

SB 458 is another huge step in streamlining the short sale process and helping underwater homeowners take positive steps in their financial and emotional recovery.

Need short sale help now? Give us a call at 877-636-0444 or Visit us here.

SB 458-Excellent news for California homeowners who must short sale their home

SB 458

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