Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
California law affects short sales
ONTARIO, Calif. (7/25/11)--A new California law will protect homeowners who are pursuing short sales by prohibiting second lien holders from pursuing deficiency judgments. Gov. Jerry Brown signed Senate Bill 485 into law on July 18. SB 458 extends the protections of SB 931 to 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. A short sale is a transaction in which the homeowner owes more than the property is worth. To sell the home, all lien holders must approve the sale because the amount owed will be short of what is owed by the borrower. Under the previous law, a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance, but the rule did not apply to second or “junior” lien holders. The measure also will encourage more short sales in California, according to Melissa Ameluxen, the California Credit Union League’s director of state government affairs. Additional borrower protection could encourage some owners to proceed with short sales who may have just moved into foreclosure for fear of liability to second lien holders, Ameluxen said. “Only lenders that actually agree to the short sale will be affected, and sellers that cannot complete an acceptable sale may still explore additional options, such as foreclosure or even bankruptcy,” she added.


RSS





print
News Now LiveWire
Which Children's Miracle Network Hospital is the winner of @CUDirect's 20 for 20 grand prize? Find out Tuesday.
38 minutes ago
Gas prices have fallen for a record 88 days in a row says @AAAnews via @washingtonpost http://t.co/c52VTdqHEB
2 hours ago
.@TheNCUA releases regulatory modernization initiative results (PDF link) http://t.co/pgLZe4aget
3 hours ago
#FinCEN seeks nominations of FIs, trade groups for membership on Bank Secrecy Act advisory group http://t.co/l5w58c277W
4 hours ago
MI pediatric dentist pledges $20K match to Hurley Children's Hospital if it wins @CUDirect's 20 for 20 http://t.co/Eq2nIPm6jo
4 hours ago