Before I tell you how to work within SB 458 in a Sacramento short sale, let's first talk about Thanksgiving. I pride myself as a person who pays attention to detail. I would never, for example, just presume that simply because a restaurant advertises it features a Thanksgiving meal that you're gonna get turkey. There is no guarantee that T-Day equals a bird. You might get turkey loaf, like my sister did when she went to the Nicollet Island Inn in Minneapolis. Or roasted turkey breast, for those who went to the Firehouse Restaurant in Old Sacramento.
But if you're like me, and you prefer turkey thigh or drumsticks, there is a great place to go in Sacramento. A place where they serve diners by carving from a complete roasted turkey. So, you can have your choice: dark meat or white meat. That place is The Hyatt. My advice is if you're going out to a restaurant for Thanksgiving, read the menu before you go. That way you won't be disappointed. There are plenty of people who don't care -- people who prefer a little diversity and creativity at Thanksgiving -- but let's just say I am not one of those.
Some things you just don't mess with.
But a Sacramento short sale is a whole different story. Here we've had a bill signed and passed last summer that prohibits a seller contribution in a short sale. Or does it? I think if you read the bill, you will see that it prohibits a lender from requiring a seller contribution in a short sale as a condition of approval. It doesn't prohibit a seller from offering it upfront. That's just not my interpretation, that's what lawyers say. Read California Civil Code 580e.
Obligatory disclaimer: This is not legal advice, as I do not give legal advice. I am a Sacramento short sale agent who negotiates and sells short sales throughout a four-county area in Sacramento. I am not licensed to give legal advice, and you can't count on anything I have to say as remotely resembling legal advice. If you want legal advice, talk to a lawyer.
I did prove that it works, though. It's not just a theory. You can work around SB 458 with a seller contribution. The trick is it needs to be offered to the bank upfront, on the HUD when submitted with the buyer's offer and listing agreement. Or, you can let the bank close the file and then reopen it. The amount that you offer needs to make sense, and this where an experienced Sacramento short sale agent can help you. I am used to negotiating payoffs with banks.
If you don't have a hardship, and you want to do a strategic short sale in Sacramento, there is hope for you -- as long as you're willing to pay for the privilege. Where does the money come from, you might ask? From the payments you aren't making. Although, I would never tell a client to stop making mortgage payments. No, sirree. Ask a lawyer that question, not me.
---
Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
