California enacted a new law recently that many were hoping would shorten the process of a Short Sale approval to 21 days. Unfortunely, the new law which goes into effect Jan 1 has been mischaracterized by some practitioners as landmark legislation calling for a 21-day turnaround for short sale approvals.
The law only requires once a short sale has been approved, the beneficiary must respond to the approval within 21 days. The new law inserts a short payoff amount request into the existing payoff demand law which generally requires a lender to respond to a request for a payoff demand statement within 21 days from when it is requested, typically by escrow.
You can read the newly enacted law here…
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