My Real Estate Blog

Anti-deficiency bill passes Assembly Judiciary Committee

The Assembly Judiciary Committee passed SB 1178 (Corbett) yesterday with a bipartisan vote of 7-1.  The bill, which will extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and now are facing foreclosure, now must pass the Assembly before going to the governor for his signature.  SB 1178 passed the Senate earlier this month.

C.A.R. is sponsoring this bill to close a loophole in the law that allows California homeowners, already facing the possibility of foreclosure, to be sued by their lender for the difference between the value of the foreclosed property and the outstanding balance on the mortgage loan.

Reprinted From C.A.R.