California Senate Bill SB458 Amended / Bill

 BILL NUMBER: SB 458AMENDED BILL TEXT AMENDED IN SENATE MARCH 21, 2011 INTRODUCED BY Senator Corbett  (   Principal coauthor:   Senator   Correa   )   (   Coauthors:   Assembly Members   Blumenfield   and Skinner   )  FEBRUARY 16, 2011 An act to amend Section 580b of the Code of Civil Procedure, relating to mortgages. LEGISLATIVE COUNSEL'S DIGEST SB 458, as amended, Corbett. Mortgages: deficiency judgments. Existing law prohibits a deficiency judgment upon a sale of real property or an estate for years for failure of the purchaser to complete the contract of sale or satisfy the obligation underlying a mortgage or trust deed given to secure payment in specific circumstances, including if the loan was on a dwelling, as specified, and the loan was, in fact, used to pay all or part of the purchase price of the dwelling. This bill would provide that a loan used to pay all or part of the purchase price of real property or an estate for years includes a subsequent loan, mortgage, or deed of trust that refinances or modifies the original loan, but only to the extent that the subsequent loan, mortgage, or deed of trust was acquisition indebtedness, as defined. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 580b of the Code of Civil Procedure is amended to read: 580b.  No   A  deficiency judgment shall  not  lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan  which   that  was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.  Where   If  both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property,  no   a  deficiency judgment shall  not  lie at any time under any one thereof if no deficiency judgment would  not  lie under the deed of trust or mortgage on the real property or estate for years therein. For purposes of this section, a loan used to pay all or part of the purchase price of real property or an estate for years shall include any subsequent loan, mortgage, or deed of trust that refinances or modifies the original loan, but only to the extent that the subsequent loan, mortgage, or deed of trust is acquisition indebtedness as defined in Section 163(h)(3)(B) of Title 26 of the United States Code.