Archive for October, 2010
- Image by Michael D Martin via Flickr
Hi–I am Happy to announce that our office moving day is tomorrow.
We will be relocating to a lovely Spanish Mission Style Building that will make you want to look for the Swallows as if you were in San Juan Capistrano (in the picture here)–close to where I grew up.— Our new address will be:
2770 Olive Hwy Suite G, Oroville, Ca 95966 (Next door to Arbys)
Phones will be the same 530 321-3617 is still my cell.
I look forward to seeing you there at the new office.
Buy Buy Now -
- Image by John Biehler via Flickr
Governor Vetoes C.A.R.-Sponsored
On Thursday, Governor Schwarzenegger vetoed SB 1178 (Corbett), C.A.R.’s sponsored bill that would have expanded anti-deficiency protections. In his veto message, the Governor made clear his view that the bill interferes with an existing contract. While disappointed in the Governor’s misinterpretation of the bill, C.A.R. is grateful to the almost 13,000 California REALTORS(R) who urged him to sign the bill by responding to the Red Alert.
C.A.R. sponsored SB 1178 to better protect homeowners going through foreclosure. SB 1178 would have ensured that homeowners keep the same “anti-deficiency” protections they have in the original loan after the loan has been refinanced.
California’s anti-deficiency protection for “purchase money” mortgages says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner’s liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers brought down by financial crisis to get back on their feet.
Unfortunately, the 1930s law hasn’t kept up with current times. Current law doesn’t apply to loans used to refinance the original purchase debt, even if the refinance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages. During those years, almost no one realized that refinancing their mortgage to obtain a lower rate, they were forfeiting their protections and were becoming personally liable on the new note.
SB 1178 would have corrected this injustice by extending anti-deficiency protections to those who have refinanced their loans.
Thank you again to everyone who joined C.A.R.’s Government Affairs Team and fought for our clients.
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