Can The Bank Come After Me For The Balance After I Perform A Short Sale On My Home?
In one word….NO!!
Gov. Brown Signs SB 458 into Law
Update-LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure 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.
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
SB 458 contains an urgency clause making it effective upon signing.
In short, in 2011 Gov. Brown signed SB 458 into law which ensures any lender that agrees to a short sale must accept the short sale payment as payment in full.
This is clearly great news for anyone facing foreclosure here in Santa Clarita, or anywhere, because the damage done to your credit in a short sale is far less than if the bank forecloses. Understanding this and the steps that need to take place in a short sale arm you with facts, which empowers you to make the right decision for you and your family when faced with this decision. [gravityform id=”13″ name=”Short Sale Consultation”]