Mortgages; retains its subordinate status. (HB2006)

Introduced By

Del. David Toscano (D-Charlottesville)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

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. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/09/2013Committee
01/09/2013Prefiled and ordered printed; offered 01/09/13 13101759D
01/09/2013Referred to Committee for Courts of Justice
01/15/2013Assigned Courts sub: #2 Civil
01/16/2013Subcommittee recommends laying on the table
02/05/2013Left in Courts of Justice