The Senate may vote again this week on SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who refinanced and now are facing foreclosure. The bill was up before the Senate last Friday and fell two votes short of passage. The bill was then granted "reconsideration," allowing it to be voted on again before the end of this week.
C.A.R. is working on amending SB 1178 to address concerns raised by legislators while preserving the "no recourse" protection for borrowers who refinanced their purchase money mortgages. Currently, the protection is only available for purchase money, that has not be financed. The protection prevents a lender from going after a borrower after short sale or foreclosure for the difference.
The passage of this bill and extension of anti-deficiency protections would be a huge victory for homeowners facing foreclosure.
Comments(0)