Hi, I’m Jason Zweigle here with ShortSaleSlayerz.com. We’re one of Northern California’s leading short sale teams. Thank you for visiting our website. Today we are going to talk about the new California Senate Bill SB458, which is the anti-deficiency assembly bill. Essentially it’s an amendment to a previous bill that was passed about deficiencies in the state of California. If a lender agrees to do a short sale, the first lien holder could no longer come after a seller for a deficiency and they would waive all deficiency rights. In other words, they couldn’t come after you and ask you to repay the forgiven balance of the short sale.
This new senate bill adds a protection to second lien holders. If you have a first and a second and they agree to do a short sale, that’s it; you’re out of debt, you’re done with a short sale and you will owe no more money. This bill only applies to short sales and not foreclosures. Many people are handing the banks the keys and walking away. This isn’t a good idea because the second lien holders can come after you for the remaining debt because you actually walked away from it.
This new senate bill is a great advantage in the short sale game for the California consumer. Also, one other added stipulation, the banks can no longer ask for a contribution from the seller. So they can’t say, hey give us $10,000 and we’ll do a short sale. You can offer as a way to incentivize the bank to agree to a short sale and sometimes that’s a good move. The buyer can offer $4,000 to $5,000 to make the deal go through. They’re getting an incredible deal anyway, so if they have to add a little money to make the deal go through, it’s no harm no foul.
If you have any questions, you can reach out to me. My number is on the website or you can fill out the form below. We’re ShortSaleSlayerz.com and one of Northern California’s leading short sale teams. We look forward to hearing from you soon, have a great day.
