Comments on: New California Short Sale Law Passed! | California SB 306

By: Tim Harris

Tim Harris — Wed, 24 Feb 2010 20:36:18 +0000

Hi Alex,

Are you working with an agent…specifically and agent who knows how to list (and buy) short sales?
Sounds like you are not. May I suggest that I refer you to one of our students?

Your questions:
Its the sellers home. The seller signs the contract etc. Later, the bank agrees (or not) to accepting less on the homes than its worth.
SS bank would not be ‘present’ at a closing.
No, the buyer can’t demand much of anything. If they bank won’t agree to the short sale…and the seller (or buyer) can’t make up for the difference
between what the lender’s net needs to be…no deal.

Like I said, you really should consider working with a HREU CDPD Student. We have the best agents in the nation as students and I assure you
whomever we would refer you to will do an excellent job.

Hope this helps!
Tim

By: Alex

Alex — Wed, 24 Feb 2010 20:30:44 +0000

Buying a short sale and need help in getting some answers.
Can a short sale have different price form seller than the short sale bank?
Would the shortsale bank be present at the closing or just the sellers?
Can the buyer demand agreed price of the shortsale form the real estate broker involved?

By: Tim Harris

Tim Harris — Tue, 17 Nov 2009 03:34:39 +0000

Technically yes….but, as with owners…tenants can also ‘cash in’ on cash for keys!

By: R B

R B — Tue, 17 Nov 2009 02:25:12 +0000

can’t a 30 day notice given to a tenant during a short sale be enforced, even though the owner is not paying the mortgage or the assosiation dues, in the satate of California?

By: Mark

Mark — Sat, 17 Oct 2009 17:23:15 +0000

This law is being misinterpreted. The 21 days refers to the lender sended a payoff demand letter on an ALREADY APPROVED SHORT SALE. Basically, for escrow when you are going to close the deal.

“The bill would also , until January 1, 2014, require a beneficiary to prepare and deliver, within 21 days upon written demand, of the receipt of a short-pay request, as defined, to prepare and deliver a short-pay demand statement, which would be a written statement, conditioned on the existence of a short-pay agreement”

So you have to have the “short-pay agreement” already done. Big difference. The banks will still take a really long time to approve the short-pay agreement.

-Mark

By: Tim Harris

Tim Harris — Mon, 28 Sep 2009 21:15:59 +0000

Ultimately…I doubt there will be anything to enforce servicers doing anything.
90% of all mortgages are now ‘owned by’ Fannie/ Freddie….I suspect that at some point if the
servicers don’t comply….bye-bye servicers.

By: Reionn Webber

Reionn Webber — Mon, 28 Sep 2009 21:02:52 +0000

I don’t want to sound like Negative Ned, but I am also concerned about how this can be enforced. If you submit to the banks and demand they respond in 21 days, and mention that they are in violation of the law if they do not do so, then what is to stop them from just saying: “If you really want an answer in 21/4 days, and can’t wait for our 90 day turnaround, then the answer is DECLINED. Case closed.” …..You know who those banks are, with the ‘I don’t care what you want, this is how we do it’ attitude. Hope someone can comment on this in a more positive light.

By: Jose Diaz

Jose Diaz — Mon, 28 Sep 2009 16:03:47 +0000

Most importantly it does not seam to take effect until January 1 2010. Will the banks be ready?

By: David Dufresne

David Dufresne — Fri, 25 Sep 2009 22:00:25 +0000

Has any one told the Banks this? they are taking 30 t0 180 days to
review files still….

By: Gunnar Jonsson

Gunnar Jonsson — Thu, 24 Sep 2009 15:12:16 +0000

Sorry, that is the NOD.
Gunnar