I wrote this for my blog "The Litterbox", and I'd thought I'd share it with my Active Rain Colleagues as well. I also want to get your opinions, so tell me what you think about this law?
California State Assembly Passes SB 1178-Who does it protect?
On August 19, 2010 The California State Assembly approved SB 1178. This bill extends the protection for homeowners who have refinanced their "original mortgage loans" who did not pull money out and are either going through foreclosure or a short sale. Question- Does this apply for people who have done loan mods as well, some of which the balance was forgiven? hmmm
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is the sponsor of the consumer-protection legislation! Under existing law, we all know if a homeowner defaults on their home they used "purchase money" to buy, the existing law applies to them. However, for homeowners who refinanced their original loan just to obtain a lower interest rate, and did not... pull cash out, this law did not apply to them.
Now it does.
So...There is still a group of people who arem't protected out there. Homeowners that did a "Cash-out" refinance, even if it was for home improvement.
What do you think? What should happen to the people who did pulled out money to landscape the backyard... remodel the kitchen... put wheelchair ramps for family members to get into the house. Or the ones who put their kids through college, paid off debt, started a business, bought a car, or took a family vacation? Should they get relief? The same relief, some relief? any relief? Should there be a difference for those peopel who can show receipts? Since we're talking about it, what should the we do with them?
If the Governor signs SB 1178, it will become effective June 2011. Why so far in the future? Why not now?
Umph...Tell me.. what do you think?