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2013 SESSION

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HB 2006 Mortgages; retains its subordinate status.

Introduced by: David J. Toscano | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Subordinate mortgages. Provides that a subordinate mortgage retains its subordinate status upon the refinancing of the primary mortgage if the principal amount secured by the refinance mortgage does not exceed the greater of the outstanding principal balance of the prior mortgage plus $5,000 or the outstanding principal balance of the prior mortgage plus any accrued interest, fees, and prepayment penalty required to satisfy the prior mortgage. Under current law, the amount of the refinance mortgage cannot exceed the outstanding principal balance of the prior mortgage plus $5,000. The bill also provides that a subordinate mortgage retains its status if the prior mortgage was not a fully amortizing fixed rate mortgage, a term defined in the bill, and the refinance mortgage is such a mortgage. The bill also expands its application to mortgages on real estate containing up to four dwelling units, whereas current law applies only to real estate containing a single dwelling unit.


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