Short Sale Laws that Favor Home Sellers in California in 2013

Short Sale Information and Favorable Laws for California Homeowners

Short Sale Related Laws you should know about as a homeowner

First Mortgage: SB 931 Deficiency Waiver on Short Sales

Second Mortgages: SB 458 Release of Liability on Short Sales in California

SB 931- When the First mortgage holder of your loan accepts full payment and satisfaction of all your outstanding first loan from the successful completion of the sale of your home, your lender is prevented from pursuing a deficiency against you even after a short sale. This is great news! What this means to you as a homeowner in California is that this releases you from further liability (deficiency) when the bank accepts and approves your short sale. Click here to read more information on SB 931 and see how this may apply to your individual situation. At any rate, whenever you are negotiating a short sale, it would still be beneficial to have your real estate agent ask for the lender to issue a short sale approval letter with the verbiage indicating a waiver of future deficiency and no promissory note. Also read more about the favorable law Code of Civil Procedure 580-e here.

Effective as of July 15, 2011, California homeowners who sell their homes through a short sale and who have subordinate loans such as home equity line of credit (HELOC) or fixed secondary mortgages, are now extended the protection against deficiency. This means that if your second lender agrees to the short sale, your lender must accept the proceeds from the short sale as a payment in full of the outstanding balance of the loans. This means that if you are a homeowner in California who sells your home in a short sale that the bank has approved, you will be released from liability (deficiency) not only on your first mortgage (SB 931) but also on your second mortgage under SB 458 in the event that the bank accepts and approves the short sale event. Receiving short sale approval is not enough, you would have to complete the short sale. Click here to read information on SB 458 and consult a real estate attorney to see how these short sale related laws may apply to your individual situation.

 For more information on how to Short Sale your home in California, please call 909-945-0602 or email brett@daybreakgroup.com. We have the experience and expertise to help you with a short sale. We have helped homeowners achieve their excpectations in successfully closing their short sale properties. Please visit our website at www.DayBreakgroup.com  and follow us on FB.com/dbluxury.

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