Sacramento Report
October 19, 2010
Governor Vetoes Anti-Deficiency Bill
Governor Schwarzenegger vetoed Senate Bill 1178, a bill designed to extend anti-deficiency protections to refinanced mortgage debt. In his veto message, the Governor wrote that SB 1178 "would fundamentally alter and impair the nature of pre-existing, previously negotiated mortgage loan contracts. In addition, the bill would encourage borrowers to strategically default on loans they have the capacity to repay simply because the mortgaged properties have lost value."
