Realty Gallery

There is a new California Law that was signed by the Governor in July and will take effect in September, which is SB-1137. The purpose of the law is to ensure that neighborhoods that have been hit hard by foreclosures and bank owned properties to stay maintained and to ensure that the lenders are actually trying to work out a loan modification or some sort of help to any one that can not make their house payment.

How will it affect you? Well if you are in an investor you will be required to maintain the properties you buy and if you do not to the appropriate city and local ordinances you could be fined $1000/ day. This is true for the bank owned properties (REO) as well so lenders that take over a home will also have to maintain it while preparing it for market.  This could make the lenders work a little harder to keep the loans from going bad and working more in negotiation of short sales, etc.

We are thinking this will help the short sale market a little and maybe give people longer times to negotiate something with the bank but overall we do not see too much change with this new law. Let us know what you think.

If you enjoyed this post, make sure you subscribe to my RSS feed!