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 Sacramento Watch
SB 458 (Corbett) LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
2011-07-15: In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.
This law is fully set forth as Senate Bill 458 (Corbett) Read More.
Other Items Of Note:
Whether you are taking part in your community, buying or selling a home items discussed in Sacramento, could have an impact on you and the world around you! California C.A.R. is sponsoring the following bills in the 2011-2012 legislative session, all of which have been assigned a bill number and an author:
AB 392 (Alejo) would amend the Brown Act to require local governments to post meeting agendas as well as any accompanying staff reports on their website, if they have one, 72 hours prior to a scheduled meeting.
AB 771 (Butler) would extend to third party vendors the existing document fee limitations which prevent Home Owner Associations (HOA) from charging an amount in excess of what is “reasonable” based on the actual cost of processing and producing required documents for prospective purchasers.
SB 837 (Blakeslee) proposes to add language to the Transfer Disclosure Statement (TDS) notifying the purchaser of a property of the eventual water efficiency retrofit requirements enacted by SB 407 of 2009 that will go into effect beginning in 2014.
As provided 2/28/2011by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.
***Past Articles***
GOVERNORS BROWNS'S 2011 BUDGET PROPOSAL CONTAINS NO NEW REAL ESTATE TAXES
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*NOTE: As always, consult with your CPA when considering this and when purchasing real estate.
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