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Elizabeth Weintraub

California Dual Tracking Law for Short Sales

By February 18, 2013

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Let's get one thing straight: the California law regarding dual tracking is not going to save you from foreclosure during a short sale. Not for 5 years. The law does NOT stop foreclosure during short sale negotiation until January 1, 2018. It's kind of hard to wade through the hoopla and self-congratulatory pats on the back by trade associations and lawmakers to get to the hard cold truth, but that's the hard, cold truth.

There is a part of the California Homeowner Bill of Rights that stops dual tracking but that applies only to those who are either pursuing a loan modification or have already received short sale approval. It does not really help underwater homeowners who are pursuing a short sale by preventing dual tracking. Lenders still have the right for the next 5 years to engage in dual tracking during short sale negotiations.

In 5 years we probably won't need to do any more short sales. Isn't that just like the government to pass a law that will be obsolete by the time it kicks in?

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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Comments

March 12, 2013 at 11:06 am
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