Finally a little good news for those who need to short sale and have two loans.
Just a quick note so you have the information regarding SB 458, which mandates Junior Lien Holders to accept short sale terms as final payment. As C.A.R President Beth Peerce notes, "SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to a accept a short sale payment on a property, All Leinholders - those in first position and in junior positions - will consider the outstanding balance as paid in full and the homeowner will not held responsible for any additional payments on the property"
I believe the decision to short sale never comes easy and though I also believe the homeowner has to work hard to ensure they can keep their home, much of what is happening today is out of their control. I am a strong advocate for Homeowners rights and believe they have been getting a raw deal when it comes to the devastating housing market. More and more we here lenders knew, insured against and made millions off of the fraud they created. We are also hearing they are beginning to pay back millions due to their admission that there was huge fraud in products they created which was a major factor in the collapse of financial markets.
I don't understand why with all the admissions out there of fraud, Lenders are not proactively helping homeowners or why they are not being held more accountable, but this is a good first step. There is key detail here we need to watch out for and that is when second leinholders agrees. Getting the agreement from a second lienholders is often the hardest hurdle to overcome in a short sale.
It is highly recommend if you are going through a short sale to review the details with a variety of professionals, i.e. Licensed Real Estate Professional, Accountant and Lawyer to ensure you have a complete understanding of process, pros and cons.