SB 458

SB 458 Signed by Governor Brown in Mid-July

Gov. Jerry Brown signed Senate Bill 458 oin 7/15/2011, which prohibits secondary lien holders from pursuing deficiencies after a short sale closes. The new law builds on the protections offered by a previous law, SB 931, which required the first lien holder in a short sale to accept an agreed-upon payment as the full payment for the outstanding loan balance. The previous law did not address junior lien holders. This new law (SB 458) allows a homeowner to use a short sale as an alternative to foreclosure or bankruptcy, and move on. Contact Elena Yu if you are thinking of a short sale, or want to know whether you should do a short sale or not. (858) 405-5175. ElenaY@WeichertElite.com.