email from the California Association of Realtors

Published by admin on June 01,2010

Red Alert Update

SB 1178 to be Voted on Again This Week

Stay Tuned for Another Red Alert!

C.A.R. is sponsoring SB 1178 (Corbett) to 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.

SB 1178 was voted on last Friday in the Senate. The bill was just two votes short of passage. The bill was then granted "reconsideration" which means it can have a vote again before the end of this week.

The bottom line is this: the fight is not over! SB 1178 will be voted on again this week. Please stay tuned for another Red Alert. It is very possible that C.A.R. will issue one before Friday.

C.A.R. is working on amending SB 1178 to address concerns raised by legislators while preserving the "no recourse" protection for borrowers who refinanced their "purchase money" mortgages.

Here is how senators voted this past Friday.

"Yes" votes: Alquist, Cedillo, Corbett (author), Correa, DeSaulnier, Florez, Hancock, Leno, Liu, Lownenthal, Negrete McLeod, Padilla, Pavley, Price, Romero, Simitian, Steinberg, Wolk and Yee.

"No" votes: Ashburn, Calderon, Hollingsworth, Strickland and Wright.

Not voting: Aanestad, Cogdill, Cox, Denham, Dutton, Harman, Huff, Kehoe, Runner, Walters and Wyland.

Absent (not in Sacramento that day due to health reasons): Oropeza and Wiggins.

Thank you to everyone who made a call to their senator. Facing lender opposition, many of those who ultimately voted for the bill, may not have done so if they hadn't received so many calls from REALTORS(R).

For More Information

Contact DeAnn Kerr at deannk@car.org.

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