Cash contribution in California???

I need some help here....

 

Long story short... short sale offer of $175,000 and complete package in with B of A.... after almost 45 days they countered back at $200,000 which is $25,000 HIGHER than where the comps say the house should be. Of course the buyers do not want to come up that much. So, the seller says he will contribute the difference. The negotiator says "no, the seller can not make ANY cash contribution". I asked why and all she said was "we can not accept money from anyone in California".

 

Now with all of that said I know the new law and that would apply here EXCEPT there is NO second. It is a B of A Fannie Mae loan.

 

Can someone please shed some light on this for me? I have a very upset buyer AND seller. 

 

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Replies to This Discussion

Permalink Reply by Patti Lyles on August 25, 2011 at 9:12am

This SB 458 is being bantered around my Title Company and me today.... The 1st is giving the 2nd $3,000 contributin but my buyers can't come up with the rest that the second demand they get to release the lien?

Permalink Reply by Patti Lyles on August 25, 2011 at 9:14am

Elizabeth or Erinn,

 

It has been a couple of weeks what have you recently learned about this topic?

 

Patti Lyles

Permalink Reply by Erinn Frisbie on August 25, 2011 at 9:46am
Nothing. Nobody has any explaination. I will need to read the 75+ page bill as a whole to get the answers and even then there will still be unexplained gray areas.
Permalink Reply by Patti Lyles on August 25, 2011 at 9:52am

This morning I called C.A.R. Calfornia Assoc. of Realtors Legal hotline and he was useless.
So this is not grey, it has become a black hole.


Erinn Frisbie said:

Nothing. Nobody has any explaination. I will need to read the 75+ page bill as a whole to get the answers and even then there will still be unexplained gray areas.
Permalink Reply by ElizabethWeintraub00697006LyonRE on September 8, 2011 at 5:54am

Somebody will have to sue to get clarification. Until there is an appellate court ruling, everybody will continue to make up their own policies. I have short sales in which the seller makes a contribution and the banks take it. I have others, specifically with Bank of America, in which there is no contribution. I've heard arguments on both sides of the fence. SB 458 should never have been passed because we did NOT need it. We certainly did NOT need the "no contribution" part thrown in. We've always had the ability to negotiate a release of liability. SB 458 just messed everything up. They should have left well enough alone.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 25, 2011 at 10:06am

SB-458 is an 8 page bill. Attached below and links here;

 

http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0451-0500/sb_458_bi...

 

http://www.aroundthecapitol.com/Bills/SB_458/20112012/

 



Patti Lyles said:

This morning I called C.A.R. Calfornia Assoc. of Realtors Legal hotline and he was useless.
So this is not grey, it has become a black hole.


Erinn Frisbie said:

Nothing. Nobody has any explaination. I will need to read the 75+ page bill as a whole to get the answers and even then there will still be unexplained gray areas.
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