There is good news on the horizon for distressed homeowners who refinanced their home. A deficiency judgment may not be lingering over your heads much longer. The Senate and CA State Assembly passed SB 1178 that protects homeowners who refinanced their original mortgage loan and find themselves in Foreclosure. There hasn’t been any help for you folks but things are changing.
Not everyone who refinanced their home used the money for trips, new cars and things but some actually refinanced to try and get a better interest rate and those folks have not slept well each night, wondering when a deficiency judgment would be coming in the mail. Well, help is on the way for you folks!
Right now, Governor Schwarzenegger has the SB 1178 sitting on his desk for signature and if signed will become effective June 2011. This will mark the end of coming after you when you refinanced (without taking money out of your home), known as a recourse loan.
And the good news just keeps getting better!!
Sacramento Short Sale News
Distressed Short Sale homeowners ALSO may get relief from deficiency judgment if their home is sold as a Short Sale. As a Short Sale Realtor ® I have found many banks not willing to forgo going after the original borrower at some time in the future. But now, if the Governor signs SB 931 Short Sale sellers will no longer have this monkey hanging around their neck. As long as the mortgage is a First mortgage and no more than 4 units which brings in the investor, the debt at the time of the sale must be fully discharged as paid in full.
Investors have been out of luck this whole time and SB931 finally brings some relief to those investors who are having trouble paying the mortgage loan, as well. Be sure to read the update about how SB931 will go into effect on January 1, 2011 and help save so many of the Short Sale sellers in California. Just click on Short Sale Ship is Docking on January 1, 2011. Investors should be paying close attention to this one!
Now, maybe we will have some families that can sleep nights. There are some good people loosing their homes and for a long time now, this has been an albatross around their necks. It’s difficult to lose your home, a child’s bedroom, a place where memories were made and now all we need is a signature from our Governor to help bring some peace to so many sad faces.
If you would like the Governor to know how you feel about this very important issue, just click on the link California Association of Realtors – Red Alert. Be sure to fill out your name and email address so your voice can be heard.
So, if you are having trouble paying your house payment, give me a call and let’s work together to get your home listed as a Short Sale. I know this is a difficult time for you and you will be treated with the utmost dignity. Call Gena, the Distressed Property Expert, your Sacramento Short Sale agent, today.
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