Question for CA agents regarding SB458

I'd like to know if California agents have already seen some short sales get rejected due to SB458. I had one approved prior to the new law with the seller paying a prom note but the buyer backed out. Now I have to start again and I'm wondering if the bank will go for it without the prom. Actually, the sales price is lower now than before.

 

Also, do you think that SB458 will cause rejections if there's not a huge hardship since the seller can't contribute?

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Permalink Reply by Kimberley Kelly on October 11, 2011 at 3:10am

I'm out here in Palm Springs, CA and feel like Harry does.  I haven't seen it, but suspect the 2nds and MI companies will be the problems..but then again, they already are!  Go in with the idea of paying them something..have that in your back pocket and give it a whirl.  If they want to get rid of it at FMV, they will.  If they simply want to collect Service Fees, they will..until they're good and ready to write off those notes and let their shareholders in on what the true value is.  We don't know that scenario..only they do.  Good luck!

Permalink Reply by Doris and Gary Peckham on October 11, 2011 at 5:36pm

We had an approval just before the new law took effect. The junior lien holder said their approval was now voided. They came back and demanded almost twice. Now waiting to see if first lien holder will cover. I wish I knew if the seconds were covered by MI or something like that. If the first decides to foreclose the junior lien holders get zip. Not logical.

Permalink Reply by Shari P on October 17, 2011 at 9:11am

It is a HELOC but it was an 80-20 original purchase loan.

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