Comments on: SB 1178 to protect a borrower on a refinanced purchase money second mortgage

By: Joy

Joy — Thu, 19 Jan 2012 22:40:59 +0000

My ex husband and I foreclosed on our home back in June 2010 after first placing it on short sale for a year. We bought the house in September 2004. The second mortgage did not accept any of the short sale offers. My ex husband recently received a letter from that second mortgage company stating we still owe approx $140K for that second mortgage. We thought that once foreclosed both mortgages are forgiven. The letter also stated that since we took out $30K of home equity in November 2008, we are liable for the entire mortgage. They did mention the Debt Relief Act in which best case scenario, the amount owed can be $15k. We do not have the means to pay back this company. Can you please provide me with more information? Thank you.

By: Teresa Senior

Teresa Senior — Sun, 04 Dec 2011 08:16:46 +0000

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By: tisa hats

tisa hats — Fri, 14 Oct 2011 11:18:21 +0000

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By: Lynne

Lynne — Wed, 16 Feb 2011 00:55:05 +0000

I have a 1st and 2nd. The first was refinanced to pay off debt and the remaining used in conjuction with the 2nd to open a business that ended up closing due to the economy. I have a pending short sale on my home, but don’t really understand what the reprecussions of a short sale may have on me in my situation vs. a foreclosure. Both attorneys that I’ve spoken with tell me that the if the bank forecloses I am still liable to pay the 2nd, so I would have to file bankruptcy before the foreclosure were to happen if I wanted to avoid the 2nd coming after me. Because I do have a pending sale, the forclosure is on hold, but there is no guarantee that they won’t foreclose anyway if the sale doesn’t go through before the sale date. Do you know if/how SB 1178 can protect me?

By: Alex

Alex — Tue, 25 Jan 2011 15:36:44 +0000

We’re in foreclosure with NOD filed and Notice of Sale filed. 1st is a refi w/cash out but documented use of funds for remodel. Same is true for the 2nd. Working with realtor on short sale, received and signed a decent Offer and submitted to bank. Bank is working on short sale but is asking for full financial disclosure which will show 200K in non IRA retirement savings. If we disclose and short sale falls through, can the bank elect to switch from non-judicial to judicial foreclosure, using the financial info gathered to pursue deficiency in judicial foreclosure???

By: CPHANCO

CPHANCO — Thu, 30 Dec 2010 16:57:03 +0000

@Herrera: Sorry, but the governer vetoed this bill at the end of September. I have not heard if the Senate will attempt to overturn the veto. With new legislatures, it is anyone’s guess.

By: LUCY HERRERA

LUCY HERRERA — Thu, 02 Dec 2010 00:28:44 +0000

HI, I WANTED TO KNOW IF THE SB 1178 HAS BEEN OFFICIALLY APPROVED/PASSED ? MY DAUGHTER HAD A FORECLOSURE IN 2009 BY THE 1ST TD HOLDER AND THE 2ND TD (PURCHASE MONEY LOAN) HAD BEEN REFINANCED WITHOUT ANY CASHOUT BEFORE THE FORECLOSURE. SHE IS BEING PURSUED BY CREDITORS FOR THAT LOAN AND HER CREDIT CONTINUES TO BE TAINTED. DOES SHE HAVE ANY RECOURSE?

By: Mathilda Keep

Mathilda Keep — Thu, 28 Oct 2010 21:33:05 +0000

Mucho thanks for useful information. Keep up the neat work. I’ll be returning often.

By: New Anti-Deficiency Rules come closer to reality in California « Contra Costa Short Sales, Catherine Myers

Fri, 20 Aug 2010 04:50:13 +0000

[...] However, be aware that these anti-deficiency rules/laws may not apply to your situation in a short sale – read this entry at the foreclosure truth blog to learn more: SB 1178 to protect borrower . . . [...]