Celhomes.com - Real Estate Professionals

The California Senate is reconsidering a vote to extend anti-deficiency protections to homeowners who refinanced their loans without cash out. Most homeowner don't realize that they are could be responsible for the balance of loan on a short sale. For more information go to:
http://www.car.org/governmentaffairs/getinvolved/redalertsb1178/
or download the article. Download file

Last week the California State Senate approved the bill 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. The bill still has to work its way through the legislature and have Governor Schwarzenegger sign it to become law. This law would help homeowners avoid deficiency judgments that would follow them unless they filed Bankruptcy.

SB 1178 (Corbett) Anti-Deficiency Protections - Anti-Deficiency rules protect a borrower from personal liability on a purchase money mortgage which goes into default and eventually Judicial foreclosure. Due in part to declining interest rates, many purchase money mortgages have been refinanced and have lost their characterization as "purchase money". Homeowners were not informed by the lender that when they refinanced they lost their legal protections and may be personally liable for the difference between the value of the foreclosed property and the amount of the loan. C.A.R. sponsored SB 1178 attempted to extend borrowers’ anti-deficiency protections to refinanced purchase money mortgages. This bill originally would have extended borrowers’ anti-deficiency protections to cover the refinance of purchase money mortgages that included cash out used to substantially improve the property, but was amended to apply only to the refinance of purchase money mortgage with no cash out. The lending industry was strongly opposed. Status: Vetoed by the Governor on September 30, 2010

Fannie Mae recently launched WaysHome, a free, interactive multi-media tool designed to educate homeowners about their options to avoid foreclosure, empower them to make informed decisions, and motivate them to take action and seek help in 2011. As part of Fannie Mae’s “Know Your Options” initiative to help struggling homeowners, the WaysHome video uses innovative technology to allow homeowners to put themselves in real-life situations, make informed choices, and immediately see the outcomes of those actions. WaysHome is available at www.KnowYourOptions.com.

How to avoid foreclosure-related scams can be a tough proposition. When your home is in foreclosure the process is a public. A Notice of Default (the first stage of a foreclosure) is a publicly recorded document. Many legit and unscrupulous people monitor those recordings. You must remain tough with all the letters and calls you will receive. Download my Avoiding Foreclosure Scams for more information on what to lookout for.
Download file

Well the Governor vetoed SB 1178, but he signed SB 931, which gives to Homeowners No Deficiency Judgment on their 1st Trust Deed in a Short Sale. Here is how it affects different loans:

New For 2011 --------------------------------No Deficiency Judgment

One-to-Four Residential Units ------------------- Yes
5 + Residential Units -------------------------------- No
First Trust Deed ---------------------------------------Yes
Second Trust Deed ---------------------------------- NO
Purchase Money Loans ---------------------------- Yes
Rate-and-Term Refinance -------------------------- Yes
Cash-out Refinance ---------------------------------- Yes
Owner Occupied Home ----------------------------- Yes
Non-owner Occupied Home ----------------------- Yes
2nd Home ----------------------------------------------- Yes
Vacation Home ---------------------------------------- Yes

To download SB 931 :Download file

All those former and current Wachovia and Wells Fargo customers that there is 2 billion dollar settlement that you should inquire about. Wells Fargo agreed to provide loan modifications worth more than $2 billion to thousands of California homeowners with "pick-a-pay" loans and to pay an additional $32 million to thousands of borrowers who lost their homes through foreclosure. If you lost your home and had a "pick-a-pay" loan you could be entitled to a settlement.