Short Sales: New Law to Help Sellers with 2nd Lien Holders Debt Forgiveness

Posted On: Wednesday, July 20, 2011 - 2:49pm | Posted By: Matthew Goulden
Topics: Buyers and Sellers | Tags: debt, loan, mortgage, short sales

A few days ago Jerry Brown signed into law SB 458 which extends the same protections afforded to sellers of short sales, making 2nd lien holder follow the same rules as your 1st loan. This will 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. The aim of this law is to stop 2nd lien holders agreeing to a short sale and then after it is all closed coming back to the sellers and asking for more money.

As a Certified HAFA specialist (home affordability foreclosure alternative) this will make my job representing sellers a little easier, with clearer defined guidelines to work out the agreement and to get the sale to close, and with a better outcome for all.

Matthew Goulden

I relocated from London, England in 2002 to Davis. What a change! From a metropolis to a university town of sixty thousand people.
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