The Short Sale ship is coming to help rescue CA Short Sale sellers!
SB 931 will be taking effect starting January 1, 2011 which will help Short Sale sellers who have 1 loan on a mortgage for a house or 1-4 units avoid a deficiency judgement who refinanced. Only applies to first mortgage or deed of trust, though.
As a Sacramento Short Sale agent, I sure wouldn’t want to be closing on a Short Sale prior to January 1, 2011 since my job is to protect my Short Sale sellers.
I DON’T work for the banks, I work for my SELLERS when I am doing their Short Sale. The new law, SB 931 will finally help those homeowners who refinanced their loans get the relief from banks that they so rightfully deserve. Many homeowners refinanced to get out of bad loans but unfortunately now find themselves in a position where they can’t afford the house payment.
New Deficiency protection for Sacramento Short Sales are getting help from SB931 with the Anti Deficiency Law which protects homeowners and investors from recourse on their first mortgages and Deeds of Trust.
SB 931 does NOT need to be owner-occupied in order to applicable to help the homeowner.
SB 931 INCLUDES all first trust deed loans. Previously, a Short Sale seller who refinanced was subject to a deficiency judgment. Now those homeowners who refinanced are not…the Short Sale ship is coming in for the rescue!
It’s no wonder we have so many distressed property homeowners with unemployment figures at 13%, businesses going out of business and the general economy in the pits. I’m thankful this Thanksgiving for relief for my Short Sale sellers that they deserve. NO Deficiency Judgements starting January 1, 2011!
Hopefully, if you are currently in a Short Sale, your Realtor is getting your Short Sale postponed if you would qualify for this Short Sale ship coming in to save the day, SB 931.
Will the banks refuse to accept a Short Sale and simply foreclose? I don’t have the answer for that. If the government continues to give money to the banks and bonuses to the servicers on foreclosures, than it is conceivable that the banks might not be willing to accept Short Sales without the Short Sale seller signing a promissory note for at least what the banks expect to get from the tax payers.
But, know that if you decide to do a Short Sale you are doing the right thing and now, California is trying to help you by protecting you from a deficiency judgment. As always every short sale seller should get the advice of their CPA and an attorney.
As always, I am here to help you as a Certified Distressed Property Expert helping you through the Short Sale process. Give me a call and let me help you with your Short Sale.
SB 931 does not include those homeowners with HELOC loans nor anyone who is in the throws of a strategic default. It also does not apply when fraud has been committed (lying on a hardship) nor does it apply if the homeowner has trashed the property or removed appliances and intentional damaged the property.
Other Short Sale Articles: