Relief for California Homeowners

Last week, Gov. Jerry Brown, signed Senate Bill 458 into law. What does this new law mean to distressed homeowners in California? One word: Relief. Earlier this year SB 931 was passed barring first lien holders from pursuing a deficiency judgments when a homeowner completes a short sale. However, it didin't address second liens at all. Leaving many homeowners hanging.

"The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said California Association of Realtors President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”