Senate Bill 458 has passed and now provides that a second mortgage lien holder who agrees to a short sale of the property over which they hold a lien, can no longer pursue the Borrower for the deficiency.
What we expect to see is fewer Short Sale Approvals. If the Borrower is or was considering Bankruptcy to absolve themselves of the obligation, this should now be done in advance of the short sale.
What we accordingly expect to see is fewer and fewer second mortgage holders agreeing to the short sale. Alternatively, they will agree to the short sale but ask the Borrow