Bill Text: CA SB1178 | 2009-2010 | Regular Session | Enrolled
Bill Title: Real property: deficiency judgments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2010-09-30 - In Senate. To unfinished business. (Veto) [SB1178 Detail]
Download: California-2009-SB1178-Enrolled.html
BILL NUMBER: SB 1178 ENROLLED
BILL TEXT
PASSED THE SENATE JUNE 3, 2010
PASSED THE ASSEMBLY AUGUST 19, 2010
AMENDED IN SENATE JUNE 3, 2010
AMENDED IN SENATE JUNE 2, 2010
AMENDED IN SENATE MAY 13, 2010
INTRODUCED BY Senator Corbett
FEBRUARY 18, 2010
An act to amend Section 580b of the Code of Civil Procedure,
relating to real property.
LEGISLATIVE COUNSEL'S DIGEST
SB 1178, Corbett. Real property: deficiency judgments.
Existing law provides that no deficiency judgment lies in any
event after a sale of real property or an estate for years for
failure of the purchaser to complete the contract of sale, or under a
mortgage or trust deed given to the vendor to secure payment of the
balance of the purchase price of real property, or under a mortgage
or trust deed on a dwelling, as specified, given to a lender to
secure repayment of a loan which 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 was used to pay debt incurred to purchase the real
property. The bill would become operative on June 1, 2011, and would
apply only to actions filed after its operative date.
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 deficiency judgment shall 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 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 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 deficiency judgment
shall lie at any time under any one thereof if no deficiency judgment
would 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 subsequent loans, mortgages, or deeds of trust that refinance
or modify the original loan, but only to the extent that the
subsequent loan was used to pay debt incurred to purchase the real
property.
SEC. 2. This act shall become operative on June 1, 2011, and shall
apply only to actions filed after its operative date.
