Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Friday, July 13, 2012
New California Law Puts Kibosh On Deficiency Judgments On Mortgage Refinances That Subsequently 'Go Underwater' & End With Foreclosure Sale
In Sacramento, California, the Los Angeles Times reports:
Homeowners who default on refinanced mortgages won't be liable for debts that exceed the market value of their lost properties. Late Monday, Gov. Jerry Brown signed into law legislation to close a legal loophole that could make defaulting borrowers responsible for paying back money they took out of previously more valuable homes when they refinanced their loans.
The lingering debt, said the author of the bill, Sen. Ellen M. Corbett (D-San Leandro) adds a second punishment to people who already have lost their biggest possession. "Many Californians have suffered the heartbreak of home loss since the economy soured, and none should owe more on their homes than the market value," Corbett said. "This legislation prevents borrowers from getting caught in an unfair and little-known trap simply because they refinanced their homes."
The bill is somewhat similar to a 2010 Corbett measure that was vetoed by then-Gov. Arnold Schwarzenegger. This year's version was modified significantly to garner support from divergent groups, including the California Bankers Assn., the California Assn. of Realtors and the Center for Responsible Lending, a consumer advocacy group.
Corbett's bill, SB 1069, passed the Senate on a bipartisan 39-0 vote and the Assembly on a 79-0 vote.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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