Loophole in CA State Law

If you own San Diego real estate and you did not refinance your home, defaulting on your mortgage limits all liability to the property itself. 

In other words, you can walk away with a clear conscience that there will be no 1099 issued for the difference between what you owed and what the property was worth.  There will also be no lien, no lawsuit, they will ask you for no more money.

 Listen to this, though: If you refinanced your property TO GET A LOWER INTEREST RATE, and now you are under water on your home, you are NOT protected from that liability.  The bank can take back the property and sue you.

Ever feel like the bank always wins?!  I mean a few years ago, they gave out money like crazy, interest rates were low and they had a lean mean marketing campaign out there to induce thousands and thousands of homeowners to refinance their property.  To do what?  Make money on the re-fi, take back the real estate, and then sue them for more?

Well, the California Association of Realtors has sponsored a bill (Senate Bill 1178) which will extend protection to anyone who refinanced their original mortgage loan to reduce their interest rate. 

I will provide more info as the time gets closer to vote on this bill and more has been discussed about it.

SEE ALL SAN DIEGO REAL ESTATE, NO LOOP HOLES, HERE!!!