For once I agree with something happening on the West Coast regarding Real Estate--they just passed SB 306, which requires lenders to respond (accept, reject, or deny) IN WRITING within 21 days to a short sale request (with full documentation, of course). That's not all, of course, there's also something about a 4 DAY response for offers submitted with HUDs (don't we ALWAYS do that?!), but the section is below--read it yourself! As in anything, the law is subject to interpretation, and my statements are my opinion only, I do not represent myself in any way to be an attorney, so consult your own.
Considering the number of short sales transactions I've been dealing with for OVER 6 MONTHS, this sort of legislation is long overdue, and Realtors in Florida need to be pressuring our fine Representatives to take similar action, don't you think?!?
Here's what the new CA law says (and GO ARNIE!):
Real property transactions.
LEGISLATIVE COUNSEL'S DIGEST
SB 306, as amended, Calderon. Real property transactions.
(1) Existing law requires that, upon a breach of the obligation of
a mortgage or transfer of an interest in property, the trustee,
mortgagee, or beneficiary record a notice of default in the office of
the county recorder where the mortgaged or trust property is
situated and mail the notice of default to the mortgagor or trustor.
Existing law, until January 1, 2013, prohibits a mortgagee, trustee,
beneficiary, or authorized agent from filing a notice of default for
an additional 30 days on loans made between January 1, 2003, to
December 31, 2007, that secure residential real property, under
This bill would, until January 1, 2013, provide that these
provisions apply to mortgages and deeds of trust recorded between
January 1, 2003, to December 31, 2007, secured by owner-occupied
residential real property containing no more than 4 dwelling units.
The bill would also, among other things, revise the declaration that
is required to be filed in this connection with the notice of
(2) Existing law states legislative findings and declarations with
regard to the duty loan servicers have to maximize net present value
under their pooling and servicing agreements, stating that their
duty is owed to all parties in a loan pool, not to any particular
parties, and that a servicer acts in the best interests of all
parties if it agrees to or implements a loan modification or workout
plan, as specified.
This bill would specify the application of these findings and
declarations to certain investors.
(3) Existing law requires a trustee or authorized agent, upon
posting a notice of sale, to post and mail a specified notice
addressed to residents of property subject to foreclosure upon
posting a notice of sale. Existing law requires a notice of sale
to be recorded in the county in which the property, or some part of
it, is situated at least 14 days prior to the date of sale.
This bill would specify how and when this notice is to be mailed.
This bill would extend the time during which the
notice of sale must be recorded from 14 to 20 days.
(4) Existing law requires a beneficiary on a deed of trust or a
mortgagee on a mortgage to prepare and deliver a beneficiary
statement or a pay-off demand statement within 21 days of receipt of
a written demand from specified entitled parties. Existing law
requires the written statement to include information reasonably
necessary to calculate the payoff amount on a per diem basis for the
period of time, not to exceed 30 days, during which the per diem
amount is not changed by the terms of the note.
This bill would revise the period of time during which the
information reasonably necessary to calculate the payoff amount may
The bill would also , until January 1,
2014, require a beneficiary to prepare and deliver
, within 21 days upon written demand,
of the receipt of a short-pay request, as defined, to prepare
and deliver a short-pay demand statement, which would be a
written statement, conditioned on the existence of a short-pay
agreement, that is prepared in response to a request from an entitled
person or authorized agent, setting forth an amount less than the
outstanding debt, together with any terms and conditions, under which
the beneficiary would execute and deliver a reconveyance of the deed
of trust securing the note that is the subject of the short-pay
demand statement. The bill would provide that the short-pay agreement
is an agreement in writing in which the beneficiary agrees to
release its lien on a property in return for payment of an amount
less than the secured obligation. The bill would permit a beneficiary
that elects not to proceed with the transaction that is the subject
of the demand short-pay request to
refuse to provide a short-pay demand statement, but would require
that he or she provide a written statement, indicating that the
beneficiary has elected not to proceed. The bill would provide that
if the terms and conditions of the short-pay agreement require
approval by the beneficiary of a closing statement prepared by an
escrowholder, approval or disapproval shall be provided not more than
4 days after receipt by the beneficiary of the closing statement, or
the closing statement shall be deemed approved, except as specified.
(5) The Escrow Law provides for licensing and regulation of escrow
agents, other than certain exempt persons, by the Commissioner of
Corporations. The law requires licensees to apply for membership in
the Escrow Agents' Fidelity Corporation, a nonprofit mutual benefit
corporation, which is established to indemnify its members against
loss of trust obligations. The law limits required membership in the
Escrow Agents' Fidelity Corporation who engage in certain kinds of
business. Existing law defines and regulates the activities of
exchange facilitators and excepts from the definition of exchange
facilitator escrow companies, under specified circumstances.
This bill would provide escrow transactions that involve money or
property held or deposited with a person acting as an
pursuant to specified actions of an exchange
facilitator regarding deposit of funds are not
transactions that require a licensee to have membership in the Escrow
Agents' Fidelity Corporation.
FILL OUT THE:
Thanks for your interest, and best wishes in your home search.
For more Tips and strategies if you are facing foreclosure-check my website
How To Buy
Loretta J. Buckner
Your "Real" Estate Consultant for Life