Great news out of Sacto this week! What many people don't realize is that the banks can -- and will -- try to pursue a deficiency against a homeowner ... if the homeowner signs off on it during a short sale. In California, it's a four-year statute of limitations. Think you won't be back on your feet in four years? The banks think you will, and they are licking their chops! Don't make any assumptions. Ask your agent for evidence that they have gotten bank approvals for their clients that do not reserve the bank's right to pursue a deficiency. And get advice from your attorney before you sign off on ANY short-sale approval letter.
Measure protecting consumers from overreaching lenders now goes to Assembly
California Association of Realtors LOS ANGELES (June 3) – The California Senate this morning approved SB 1178 (D-Corbett) by a 30 to 4 vote, extending anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure. The California Association of Realtors (CAR) is the sponsor of the consumer protection legislation. “Currently, if a homeowner defaults on a mortgage used to purchase his or her home -- known as a 'purchase-money mortgage' -- the homeowner's liability on the mortgage is limited to the property itself,” said CAR President Steve Goddard. “Unfortunately, the original law did not extend the purchase money protection to loans that refinance the original purchase debt, even if the refinance only was to obtain a lower interest rate. SB 1178 corrects this inequity and extends the same protections to consumers who refinance their home loans. “Today’s vote was a victory for homeowners in California,” he said. “SB 1178 now moves to the Assembly for approval. CAR is calling on our elected representatives to swiftly pass this much-needed legislation and send it to Gov. Schwarzenegger for signature.”Leading the way…® in California real estate for more than 100 years, the California Association of Realtors (www.car.org) is one of the largest state trade organizations in the United States with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles. Brian Bean
Real Estate Broker
http://www.scott-brian.com/
http://www.orangecrestriversidehomes.com/
Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula
