Short sales haven't ever really been very easy. The Govt tried streamlining short sales with the introduction of the H.A.F.A. program, but, also then, accomplishing this is usually lengthy and also tedious. Quite a few homeowners' wonder whether it is not best to simply foreclose since they don't desire to cope with the hassle of completing the short sale.
Additionally, homeowners had to worry about the possibility of the short sale lender coming after them for the deficiency between the short sale payoff and the full loan amount they owed. Short sales were difficult at best, and the lengthy process combined with the stress of not knowing the outcome, often made them a homeowner's last resort.
However, California has always been a borrower friendly state. State representatives have always tried to enact laws to help homeowner's either hold onto their home, or lose it with less humility. Recently, Gov. Jerry Brown sign into law Senate Bill 458. This bill states that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Until now, Senate Bill 931 only pushed the first lender to accept the short sale payment as payment outright, however , SB 458 expands this particular legislation to jr . lien holders also. This bill provides homeowners the assurance they need to proceed with a short sale, understanding that when the short sale finalizes, they'll not be liable for any kind of insufficiency obligations.
Generally, with plans such as H.A.F.A. along with the Mortgage Debt Relief Act of 2007, and now SB 458, the best choice for any property owner going through foreclosure, is really a short sale. A short sale minimizes harm to credit score as well as enables the property owner to leave their property on their conditions, as opposed to a loan company evicting them with a foreclosure.
Additionally, homeowners had to worry about the possibility of the short sale lender coming after them for the deficiency between the short sale payoff and the full loan amount they owed. Short sales were difficult at best, and the lengthy process combined with the stress of not knowing the outcome, often made them a homeowner's last resort.
However, California has always been a borrower friendly state. State representatives have always tried to enact laws to help homeowner's either hold onto their home, or lose it with less humility. Recently, Gov. Jerry Brown sign into law Senate Bill 458. This bill states that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Until now, Senate Bill 931 only pushed the first lender to accept the short sale payment as payment outright, however , SB 458 expands this particular legislation to jr . lien holders also. This bill provides homeowners the assurance they need to proceed with a short sale, understanding that when the short sale finalizes, they'll not be liable for any kind of insufficiency obligations.
Generally, with plans such as H.A.F.A. along with the Mortgage Debt Relief Act of 2007, and now SB 458, the best choice for any property owner going through foreclosure, is really a short sale. A short sale minimizes harm to credit score as well as enables the property owner to leave their property on their conditions, as opposed to a loan company evicting them with a foreclosure.
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