Bill Text: VA HB2006 | 2013 | Regular Session | Prefiled
Bill Title: Mortgages; retains its subordinate status.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-05 - Left in Courts of Justice [HB2006 Detail]
Download: Virginia-2013-HB2006-Prefiled.html
13101759D Be it enacted by the General Assembly of Virginia: 1. That §55-58.3 of the Code of Virginia is amended and reenacted as follows: §55-58.3. Priority of refinance mortgage over subordinate mortgage. A. As used in this section: "Fully amortizing fixed rate mortgage" means a mortgage, deed of trust, or other instrument creating a security interest in real estate that has no adjustable rate, balloon, or acceleration features except in the case of default. "Refinance mortgage" means the mortgage, deed of trust, or other instrument creating a security interest in real estate given to secure a refinancing. "Refinancing" means the replacement of a loan secured by a prior mortgage with a new loan secured by a mortgage, deed of trust, or other instrument and the payment in full of the debt owed under the original loan secured by the prior mortgage. "Subordinate mortgage" means a mortgage or deed of
trust securing an original principal amount not exceeding $150,000, encumbering
or conveying an interest in real estate containing not more than B. Upon the refinancing of a prior mortgage encumbering or
conveying an interest in real estate containing not more than 1. Such refinance mortgage states on the first page thereof in bold or capitalized letters: "THIS IS A REFINANCE OF A (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) RECORDED IN THE CLERK'S OFFICE, CIRCUIT COURT OF (NAME OF COUNTY OR CITY), VIRGINIA, IN DEED BOOK ________, PAGE ________, IN THE ORIGINAL PRINCIPAL AMOUNT OF ________, AND WITH THE OUTSTANDING PRINCIPAL BALANCE WHICH IS ________."; 2. The principal amount secured by such refinance mortgage does not exceed the greater of the outstanding principal balance secured by the prior mortgage plus $5,000 or the outstanding principal balance plus any accrued interest, fees, and any prepayment penalty required to satisfy the prior mortgage; and 3. The interest rate is stated in the refinance mortgage at the time it is recorded and does not exceed the interest rate set forth in the prior mortgage, or the prior mortgage was not a fully amortizing fixed rate mortgage and the refinance mortgage is a fully amortizing fixed rate mortgage. C. The priorities among two or more subordinate mortgages shall be governed by subdivision A 1 of §55-96. D. The provisions of subsection B shall not apply to a subordinate mortgage securing a promissory note payable to any county, city, or town or any agency, authority, or political subdivision of the Commonwealth if such subordinate mortgage is financed pursuant to an affordable dwelling unit ordinance adopted pursuant to §15.2-2304 or 15.2-2305, or pursuant to any program authorized by federal or state law or local ordinance or resolution, for (i) low- and moderate-income persons or households or (ii) improvements to residential potable water supplies and sanitary sewage disposal systems made to address an existing or potential public health hazard, and which mortgage, if recorded on or after July 1, 2003, states on the first page thereof in bold or capitalized letters: "THIS (DEED OF TRUST, MORTGAGE OR OTHER SECURITY INTEREST) SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY HEREUNDER, BE SUBORDINATED UPON THE REFINANCING OF ANY PRIOR MORTGAGE." |