A Decent Senate Bill
A multitude of people in Chula vista and all of San Diego have found themselves upside down on their houses. For once it looks like there might be a decent Bill that the Senate will vote on. It is geared to extend anti-deficiency protections to homeowners who have refinanced. As most are hopefully aware, if a homeowner defaults on a mortgage used to purchase their home, the homeowner’s liability on the mortgage is limited to the property itself. While this law has helped protect borrowers with purchase money mortgage loans, it does not extend the protection for purchase money mortgages to loans that refinance the original purchase debt—even in cases where the loan was refinanced to achieve a lower interest rate. I have not read this proposed Senate Bill 1178, and who knows what kind of strings they may have attached to it. However, if it is purely to extend the anti-deficiency statutes to refinanced loans, this would be a huge protection to thousands of homeowners and a great protection incentive to refinancing. Hopefully this is a step in the right direction to provide some releif for our local chula vista as well as the rest of San Diego.
visit: http://www.equityinmotion.net for local san diego and chula vista real estate and financing info.
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