NEWS ALERT: August 19, 2010
By a 49 to 14 vote, the California State Assembly approved SB 1178 extending anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure.
We've been waiting for a decision on this bill simply because it seemed unfair that those who refinanced their original loan couldn't get the same protection even though several of them refinanced it to get a lower interest rate. Many of them are now facing foreclosure too because of job loss or a huge decrease in their income.
"Under existing law, if a homeowner defaults on a mortgage used to purchase a home-commonly referred to as a "purchase money mortgage"-the homeowner's liability on the mortgage is limited to the property itself. However, homeowners who refinanced the original purchase debt, even if only to obtain a lower interest rate, were not extended the same protections. SB 1178 corrects this unfairness and extends the same protections to consumers who refinance their home loans."
This is great news for all homeowners and real estate professionals in California! Read the rest of the story here: California State Assembly passes SB 1178 protecting homeowners.