Wednesday, August 8, 2012

West Sacramento Short Sale and UCC-1 Liens in California

Today let’s talk about UCC-1 Lines.
 

The one thing I know for sure is that while the process is usually cookie cutter, each and every West Sacramento Short Sale has it quirks, twists and turns. Such is the case of a recent Sacramento Short Sale. We have been working this short sale for nearly 500 days. No, that's not a typo - 500 days. With an average submission to approve time of 48 days this one has truly thrown us for a loop. We are on our 4th or 5th buyer. It is a Chase / WAMU 1st and 2nd with Freddie Mac as the investor. We have had this Sacramento Short Sale approved several times. The issue is the UCC-1 lien.

For those not familiar with UCC-1 liens in California, if a UCC-1 lien is handled correctly the lien becomes senior to the first mortgage. How did this happen you ask? The Sacramento Municipal Utility District (SMUD) issues low interest loans for energy efficient home improvements - new dual pane windows, enhances insulation etc. As is the case of this homeowner she has a SMUD lien for nearly $20,000. The issue is that there are very few servicers that understand that the lien survives the foreclosure and even if foreclosed on the investor will have to pay off SMUD. Now you can bet your bottom dollar that SMUD knows this and therefore doesn’t negotiate. They know they are going to be made whole.

After well over a year of negotiations it looks like we have finally found someone at Chase and Freddie Mac that have acknowledged the lien will outlive the foreclosure and we expect to have our approval this week.

Never give up, never say die, perseverance will pay off in the end. The day that approval letter comes in will be a red letter day for us for sure. To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short saleinformation. Call me today and sleep better tonight; you’ll be glad you did

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