What makes it “landmark” is that sellers will now be required not only to reveal their properties will be “short sales” prior accepting ANY offers on it, they also must divulge to potential buyers the dollar amount of their total outstanding encumbrances (at the time of listing) and whether or not they have written approval (and possibly prove if they do) that their most senior TD holder will accept the price they are asking in the listing.
Perhaps this info will all need to be disclosed in the (public) listing.
In other words, as sellers most likely behind in their mortgage payments and thus are looking for a buyer to “bail them out,” they have LOST their right to privacy in these matters.
This is how I see it manifesting (in addition to all the usual and customary disclosures).
