Senate Bill 458 Passes – New Benefits for Short Sales

Who says that the State of California can’t get anything right in terms of policy?

Just over the weekend, Governor Jerry Brown signed Senate Bill 458 which will further protect homeowners attempting short sales by
barring first and secondary lien-holders from going after sellers for money owed after the short sale close.

Effective immediately, the new law builds on SB 931 a state law which protected homeowners from deficiency judgments for first lien holders but did not account for the second lien. The new law, which became effective immediately, now prohibits secondary lien holders from pursuing deficiencies after a short sale closes.

Finding a short sale agent who can adeptly navigate through the short
sale minefield remains the challenge for many distressed homeowners.

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2 Comments

Filed under California, short sales

2 responses to “Senate Bill 458 Passes – New Benefits for Short Sales

  1. fat

    I wish you guy up at the hill thinks this threw. now the second won’t agree to this and causes the short sale into forecloser.They can’t ask for anymore money even thought its a few hundred because of hud disclosuers. which makes this illegal. This bill which was intended to help homeowner killed the processor to even start a short sale anymore. Which causes all short sale into forecloseurs.

    • ladyrock

      Hi, you have a good point.The new SB 458 is good for homeowners who short sale however it has made the short sale negotiation much more difficult with the 2nd lien holders. They are now asking for much more money (sometimes 20-30%) which causes some short sales to fail if not structured correctly to begin with.

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