Legal Question in Real Estate Law in California
In CA if the first lien holder allows only 6% of balance to 2nd lien holder, can the 2nd ask a promisory note from the seller before granting the approval of the short sale.
Asked on 4/18/12, 10:59 am
1 Answer from Attorneys
No. It is prohibited by Code of Civil Procedure section 580e(b). Short sales are now take it or leave it propositions now; the proceeds of the sale are all the lenders get if they approve the short sale. How they divide it up, is up to them, and they can ask for discounts from the brokers, etc., but as to the borrower, the sale price is all the lenders can get if they approve the sale.
Answered on 4/18/12, 11:42 am
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