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Pebble Singha ..'s Blog

By Pebble Singha .. | Agent in Encino, CA

Foreclosed homeowners could owe tens of thousands of dollars to lenders!

Pebble Singha

Certified Distressed Property Expert



Hi Folks,

I just learnt today that the California Association of Realtors is trying to have Bill 1178 pass that will help the homeowners who are being foreclosed on a non recourse loan. What that means is that all those folks who refinanced their mortgages may be protected under this bill. I am in full support of this bill. This will cover up the loo pole in California about protecting the homeowners caught unaware, that by refinancing they gave up their rights and allowed these same lenders to come after the borrowers for the remaining unpaid debt that these lenders advertised so heavily and promoted these products to unsuspecting homeowners.


A lot of borrowers just refinanced because they wanted to get a lower interest rate or even to do improvements to their home which increased the value of the homes, but due to the sagging market and deflated values they cannot afford their mortgages . This could be due to many scenarios like loosing a job, divorce, death and even medical reasons. During the boom with the lenders so aggressively pursuing homeowners with teaser rates and other products causing them to lower their payments, most homeowners were sucked into this. I support this law. Keep your eyes open and support this bill.


Please read this article below………

 California’s real estate association is warning people who lose — or are in danger of losing — their homes to foreclosure that they could face a hefty lawsuit from the lender, even after handing over the keys.California law has protected borrowers from so-called “deficiency” liability, where in essence the house serves as collateral for the loan, for their original mortgages since the 1930s.

But if consumers refinanced their original mortgage — even for a lower interest rate or to finance home improvements — and fail to make payments leading to foreclosure, lenders can sue for the difference between the money owed and the value of the property, according to the California Association of Realtors. For example, if a homeowner has $200,000 outstanding for a refinanced mortgage and the lender forecloses on the house with the property valued at $150,000, the former homeowner could be liable for the remaining $50,000.

“Most homeowners have no idea they are personally liable,” CAR president Steve Goddard said in a news release Tuesday. “Foreclosure is difficult enough on a family. Getting sued for tens of thousands of dollars after losing your home is much worse.”The state association has sponsored legislation — Senate Bill 1178 by state Sen. Ellen Corbett, a Democrat from Los Angeles — to close the loophole.Corbett says many homeowners are not aware of the law, which allows banks to seek funds for refinanced loans. The bill only affects refinanced mortgages.

“Lenders have a responsibility to ensure that borrowers understand loan terms and can meet them,” Goddard said. The bill “puts in place much-needed consumer protections and deserves swift passage by the California Legislature next week.”


Pebble Singha’s goal is to help homeowners one home at a time. I support this bill.

For more info on how to avoid foreclosure,buying a home,Selling a home go to


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