Expediting Short Sale Approval is a Mandate now!

Recently, the California Senate Bill SB306 was approved by the Governor to help expedite the Short Sale Process.

Such law applies to all 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 new law requires that

1. All Lenders or the Beneficiary of the Property must either Deny a Short Sale offer in 4 days from receiving the offer or it is assumed to be “accepted.”

2. All Lenders or the Beneficiary of the Property must, within 21 days 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.