Senate passes CAR Anti-deficiency Bill

After a failed vote last week, CAR reached out to several senators who had voted against this bill, including Senator Hollingsworth. Senator Hollingsworth shared his legitimate concerns that the bill was too far reaching regarding cash-out refi’s. The bill was amended yesterday and Senator Hollingsworth not only voted for the bill, he stood on the floor and recommended its passage.

Red Alert Update

SB 1178 Passes Senate!

Victory for REALTORS® and Their Clients!

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

Thank you to the over 5,000 REALTORS® who made a difference by contacting their senator to support the bill! For more information on the vote, see the list below.

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.

Here is how senators voted today.

“Yes” votes: Aanestad, Alquist, Ashburn, Cedillo, Cogdill, Corbett (author), Correa, DeSaulnier, Ducheny, Florez, Hancock, Hollingsworth, Huff, Kehoe, Leno, Liu, Lownenthal, Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero, Runner, Simitian, Steinberg, Wolk, Wright, Wyland and Yee.

“No” votes: Calderon, Denham, Strickland and Walters.

Not voting: Cox, Dutton, and Harman.

Absent (not in Sacramento that day due to health reasons): 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®.

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  • Tim

    As much as this bill is needed (providing it passes the Assembly), it does not help those who will be losing their homes before the bill becomes effective on June 1, 2011. I am sure there is some political reason it was not made to be retroactive. Since it has not been voted on yet in the Assembly, I urge everyone to contact their Assembly-person and urge them to amend the bill to make it retroactive. This is the right thing to do for all Californians, not for just those that face losing their home a year from now.