From: Spencer Scheer
Subject: Passage of SB 1069-Expansion of Anti-Deficiency Protection. Further Limits on Ability to Obtain Deficiency Judgment.
Be prepared for a flurry of new California and federal legislation governing foreclosures, consumer financing and evictions (especially SB 900).
The latest in CA foreclosure legislation is SB 1069. Below is a brief recap. No need to panic. Again, like most of the legislation being passed, it is effective on 1.1.13. It will call for lenders to understand their rights both at loan origination (so to properly characterize and structure loans) and upon default, so that effective remedies can be pursued.
Enacted: S.B. 1069 (Amends C.C.P. § 580b). Extends Anti-Deficiency Protection to Refinances of Purchase-Money Loans or Failure of Purchaser to Complete Contract of Sale.
Impact of Legislation: Confirms that no deficiency judgment may be obtained on any loan, refinance or other credit transaction that is used to refinance a covered purchase-money loan (also to purchasers who do not complete contact of sale i.e. seller carry back sales).
NOTE: For a comprehensive review of new legislation and case law developments in CA foreclosure, bankruptcy and eviction law, please sign up for SLG’s webinar on 9.20.12. You will not find better value for the time and money spent.
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