ALERT

[NEED LEGAL HELP?] Call our 24/7 Helpline: 1-866-723-4855

Law Offices of Jon G. Brooks


With the new year California homeowners who might suffer a foreclosure now will have enhanced protections against mortgage lenders or debt buyers trying to collect on a foreclosed first mortgage or sold-out junior mortgage. Senate Bill 426, signed into law in July 2013 and effective on January 1, 2014, strengthens California’s existing anti-deficiency statutes. Specifically, SB 426 amends CCP Sections 580b and 580d. This follows on the relatively recent addition of Section 580e applicable to the short sale context, which prevented second mortgage lenders (usually home equity line lenders) from using the short sale as leverage to coerce homeowners into agreeing to remain liable for the balance of the second mortgage after the short sale. SB 426 also follows last year’s amendments to California’s anti-deficiency rules that included refinanced purchase money loans (where there is no advance of principal) to be given the same protections as original purchase money loans.

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
Tweat cdn.justipedia.com
"Justipedia" on Twitter


'@justipedia_com'
Sign up for Justipedia's Free Newsletter!

Never Miss an Article!

Subscribe to our free newsletter now - The Best of Justipedia.