This may be old news for some of you, but I felt it is worth repeating. The law SB 458 extends protection for home owners in short sale situations. It ensures 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 previous law in place protected home owners against first mortgages requesting a deficiency judgement but junior lien holders (2nd mortgages, equity lines of credit, etc.) did not fall under protection for home owners. Law SB 458, signed into law in July, now extends protection against junior lien holders.
This law is a big win for homeowners who find themselves in a financial situation that leads them to a short sale. Homeowners will be protected from requests for additional payments by lien holders. The law had a clause making it effective upon signing.
Thanks from all of us Gov. Jerry Brown…