Replies to This Discussion

Permalink Reply by Sameer Punjani on July 31, 2011 at 9:23am

Purchase money is still the same on 1st or 2nd right. its only if its a refi / cash out or equity loan on the 2nd where they still have some recourse. I mean come on, the 2nd lien holders knew the risk of lending at 100% ltv, so they charged 10-14% interest and ripped off consumers. Now its their turn to feel the heat. So what, you lend out $100K and the first wants to give you 6% of the value.  Like they say, and I quote.. " bulls make money, bears make money, pigs get slaughtered" 2nd need to cut their losses, take $3000 - $6000 max, and move on. These idiots are slowing down the housing recovery by some dumb idiots in corporate offices who have no freakin clue what they are doing....they even got fannie and freddie looking at renting out properties.  Idiots.

Permalink Reply by Erinn Frisbie on August 8, 2011 at 11:31am

Kelly,

I just had a short sale down right declined, with no second, because the way the bill is written sellers can not contribute cash to the sale.... voluntarily or otherwise. While I do see the benefits, there are downfalls as well. 

Permalink Reply by ElizabethWeintraub00697006LyonRE on August 9, 2011 at 4:41am

I see SB 458 has a direct affect on the Bank of America short sales but not so much the others. Many other banks are still allowing the seller to make a contribution, and lawyers tell me it's a gray area. It's not yet really defined, regardless of how it looks.

 

Personally, I think SB 458 has done more harm than good.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Sacramento Short Sale Agent

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 Patti Lyles on August 25, 2011 at 9:26am

Elizabeth,

Have you got anyone to define SB 458 grey areas yet? I have a 2nd demanding money and theTitle Company saying my buyers cannot conribute to that demand....

Permalink Reply by Erinn Frisbie on August 25, 2011 at 9:45am

No I have not. I spoke with my title rep, escrow officer and broker and all say that because of SB 458 the bank CAN decline a short sale even when a seller is willing to contribute. As far as I know the SELLER can not contribute... I have not heard anything about a buyer not being able to contribute.

Permalink Reply by Patti Lyles on August 25, 2011 at 9:47am

Can the BUYER make the cash contribution? I have done this prior to SB 458. Please advise

Erinn Frisbie said:

No I have not. I spoke with my title rep, escrow officer and broker and all say that because of SB 458 the bank CAN decline a short sale even when a seller is willing to contribute. As far as I know the SELLER can not contribute... I have not heard anything about a buyer not being able to contribute.