There are laws that have been recently applied that ensure that home owners who choose the option of short sales are protected under law, this law is the Senate Bill 931 (SB 931), which provides protection to certain home owners who do short sales.
While short sales may be a good thing for a lot of home owners who are unable to pay off the remainder of the amount of the property value and decide to sell it for less than it was bought. There are other reasons also why a home owner would choose to indulge in a short sale, and some of those is the fact that the price of the real estate may be a lot less now than what it was valued at, at the time of purchase.
Whatever the reason there are as always pros and cons for the seller of the home, which they should consider very carefully. It’s for such reasons that people should take that advice of professional legal advisor such as Mitchell Reed Sussman & Associates who are professionals in this matter.
One of the disadvantages that are also associated with short sales is the fact that the lender has the right to sue the borrower for the price difference, under certain circumstances.
Those that qualify for a short sale protection are those whose circumstances are in tune with the conditions which are a part of the proceedings of this law. The protection available is only applicable for families and for private residences, this does not mean that it can be used by corporations that are hoping to benefit of the law.
The protection of Senate Bill 931 (SB 931) is applicable only when the deed is processed by a first trust deed, and this applies also only for a single family home which the law defines as “a dwelling of not more than four units.” These are some of the facts which need to be considered while choosing to short sell.
In some cases a short sale is a very wise option while in others not so, to understand where the seller stands one of the best things that they can and should do is contact a professional attorney’s office such as that of Mitchell Reed Sussman & Associates. Here they will receive some of the best information and advice regarding the services that are available.
Additional Resources: California Code of Civil Procedure 580e
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