CA SB458 costs me $23.58 to close
I think by now, most people are familiar with this CA Senate Bill 458,
SB 458, Corbett. Mortgage Deficiency Judgements
"Existing law prohibits a de
secured by a
not more than 4 units in any case in which the trustor or mortgagor
sells the dwelling for less than the remaining amount of the
indebtedness due at the time of sale with the written consent of
the holder of the
ficiency judgments.ficiency judgment under a notefirst deed of trust or first mortgage for a dwelling offirst deed of trust or first mortgage......"
I think this topic had been discussed in this forum many times, but here is how it affected my end:
Escrow to close tomorrow 8/18/11. We had sent out final HUD1 approval to lender Wells Fargo and it is short by $23.56. The closing agent said the investor needs to net xxxxxxx or this short sale is not going to be approved. Somebody needs to make up for the short, but they are fully aware of SB458. This morning I got an e-mail from closer and he suggested, "can you or the buyer's agent make this contribution? That is not breaking the SB458." Seller can't contribute even if they can and want to, title won't allow it, it can't be passed on to the buyer as this triggers a new buyer lender HUD approval, can't pass it to the buyer's agent because of the approved commission on their end per WF HUD, so I pretty much know he is trying to point it towards my side.
I have this short sale for 9 months now (I could have birth a child, for Pete's sake), do I let this go for a mere $23.58? Of course not! So I emailed everybody involved that I am coughing up the $23.58 and all move forward.
Purchase price $135,000.
Replies to This Discussion
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Permalink Reply by Jeff Payne on
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Pay it and move on, you will get many referrals from your seller to make up for it
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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I had the same thing happen last week $56. Without making a big deal about it, the Escrow Officer paid it from their fee. We had been working on this one for almost 2 years. This was an extremely generous gesture. I'll always try to use this Escrow Company and Officer from now on whenever I can !
If asked, I would have paid it.
Thom Colby
Broker
Newport Beach CA
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Permalink Reply by Laura Rivera on
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I already did. Actually, the shortage was about $150 and some cents, title company made adjustments to their fees to bring it down to $23.56. It takes a village to close a short sale nowadays. And transaction is closing today. Everybody is happy, that's all that matters.
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Permalink Reply by Shari P on
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$23.58? $56? $100? Are you guys kidding me? I'm must be a chump because I always end up chucking in $100 or much more to get these friggin short sales closed. I guess I'm a little sensitive because I just closed a short sale where both me and listing agent took a .25% haircut on the commission to give to the second lienholder; PLUS I paid $1060 (!) the buyer's lender would not allow at the last minute; AND escrow chucked in $600 because the seller's bank paid the property taxes late but the penalty didn't show up until we were ready to close. There was no time to renegotiate with the because the banks would not extend. And, get this...the bank initially rejected the final HUD the day before closing because the buyer has a P.O. Box rather than a physical address. (The P.O. Box was on the approved HUD when they sent the approval letter.)
On a $560,000 sales price three parties gave up a total $4410
I'm o.k. with it in most respects because #1--some money is better than no money, and #2--my buyers are awesome and I'm happy they are happy. BUT I'm not o.k. with 100% lender mistakes that they assume will be fixed with agent commission contributions.
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