In addition to the new Home Owners Bill of Rights that was signed
into law last week, Governor Brown also signed into law SB 1069 which adds an
extra layer of protection with regards to deficiency protect on any loan used
to refinance the original purchase money loan plus and loan fees, costs and
related expenses in a refinance. The new protection does not cover the cash out
portion if the consumer took a cash out refinance.
Prior to this law which
takes effect January 1 2013, if the consumer refinanced his second mortgage and
many have, the deficiency protection of the purchase money first was lost. In a West Sacramento foreclosure the homeowner
could remain liable for the debt allowing the refinanced second to pursue a
settlement. This new law changes that.
In a West Sacramento Short Sale, if the first or
second lender agrees to the settlement they both waive their right to seek a
deficiency judgment and agree to settle the debt for less than was owed. You
may still have income tax consequences depending on your situation but the debt
is settled.
The details and wording
of the bill can be found on the link below or call me to discuss your
particular situation To get a better idea of when your West
Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for
a free estimate or call me today for a free no obligation consultation or for
the latest West Sacramento short sale information. Call
me today and sleep better tonight; you’ll be glad you did
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