Los Angeles Business Journal

Homeowner Foreclosure Limit Signed Into State Law

LABJ News from Around the Web Tuesday, July 10, 2012

Gov. Jerry Brown has signed legislation closing a loophole that could have made defaulting borrowers responsible to pay back all the money they borrowed when refinancing their previously more valuable homes. The Los Angeles Times reports that homeowners who default on refinanced mortgages now won't be liable for debts that exceed the market value of their lost properties.