New CA Law Protects Home-Owners who Refinanced their Purchase-Money loans but now find themselves in Foreclosure.

New CA Law Protects Home-Owners who Refinanced their Purchase-Money loans but now find themselves in Foreclosure.

SB 1178 was just approved by the Senate, over lender opposition, with a vote of 30 to 4.

SB 1178 will extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn’t even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender.  Thus, home-owners who refinanced their purchase-money loan can still have the protection of CA anti-deficiency laws.

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