DID YOU KNOW……..
If you buy an investment property in California and the following four items apply, you are in violation of civil code if you do not make an offer on a specialized contract called a NODPA.
1. Owner occupied
2. 1 to 4 units
3. Buyer is an investor
4. Notice of default filed
It gets worse, …….the Seller can come back and take back ownership from you up to two years afterwards!
Just ONE of many good reasons to work with an agent who is experienced in working with investors. All contracts appear the same but now you know they are NOT!
Today I met with Bankruptcy Attorney, Jen Grondahl Lee. We discussed briefly new Senate Bill 458, and how it may effect Short Sellers. Please see the attached link to Jen's most recent blog post on the subject. I hope you find the information helpful. If Bankruptcy is a potential option for you, I highly recommend that you contact Jen for legal advice. She cares a lot for each and every one of her clients.
Senate Bill 458 Legal Considerations
For News Release
1790 First Street Livermore, CA 94550
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
Governor Brown signed into law today, July 25, 2011 a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residen- tial units, regardless of whether the lender is a senior or junior lienholder. Effec- tive immediately for transactions closing escrow from this day forward, both sen- ior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a con- tribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or po- litical subdivision of the state; a lien secured by a bond as specified; a public util- ity lien; and additional rules apply if a note is cross-collateralized by more than one property.
This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.