July 15th, 2011 was a great day for homeowners in California. Senate Bill 458 was put into law and this bill stops second lien holders from future collections WHEN you complete a short sale.
This is a huge win for homeowners and investors. This law covers single family homes up to 4 units.
Now, if you let the property foreclose the second lien holder has the ability to pursue you for collection of what you owed.
There are many misconceptions regarding just walking away from a property and letting it go to foreclosure. The first mortgage is the only lien cleared. If there are any subsequent liens they have the ability to pursue collections for 4 years and get legal judgement’s against you that will allow them to garnish wages and levy bank accounts.
Banks are getting their paperwork in order to start a new round of foreclosures. They have shortened the expected foreclosure time from an average 18 months to 8 months.
If you’re late on your payments, now is the time to look at all of your options. Government programs, Lender specific programs are there to help you avoid ultimate foreclosure and possible future legal judgement’s.
If you have questions about short sales, fill out our form and we will get back to you via email.
Want to see if we can do a short sale in Modesto, Ca. And qualify for the $20,000. Program through any of the banks.