It’s more like we tried to get rid of zombie mortgages and ended up with a bunch of new rules in California making HELOCs and Equity lines of credit less likely to happen across the state. What happened in Spokane? It sounds different.
Replies
What are the new rules making second mortgages and HELOCs more complicated?
jul 15, 2025, 4:12 pm • 3 0 • view
AB 130 would make many subordinate liens unenforceable on any residential property (ADUs, 1-4 units, apartments, mixed-use) if any of these occurred during the loan: No borrower contact for 3 yrs No monthly statements No servicing/ownership notice Borrower got a write-off notice (e.g. 1099)
jul 15, 2025, 10:12 pm • 4 0 • view
So the subordinate loan holder has to know and swear to what happened with the superior mortgage. That seems very bad indeed, because how could they know.
jul 15, 2025, 10:26 pm • 4 0 • view
Yep it wasn't well thought out and will mess with ADUs a ton. @shanedphillips.bsky.social here is the thread response on what is going on btw ^
jul 15, 2025, 10:59 pm • 4 0 • view
Before foreclosing, servicers must swear under penalty of perjury that none of those things ever happened—by any servicer. Few will risk jail to certify what another company did, making foreclosure on subordinate liens nearly impossible in California. ADUs are seen as risky in general already.
jul 15, 2025, 10:12 pm • 7 0 • view
@housingpony.bsky.social
jul 16, 2025, 4:07 pm • 1 0 • view
I think this summarized it. Pretty sure the issue's been resolved, but I haven't looked into how. Housing Code Consequences: Zoning meant to encourage middle housing could complicate market share.google/HUChP43dcH0s...
jul 15, 2025, 6:09 pm • 3 0 • view
wait was this ever fixed? If so, how?
jul 16, 2025, 4:36 am • 2 0 • view
This wasn’t ever actually a real problem, from what I’ve been able to tell. The appraisers seemingly misinterpreted the federal rules they were concerned about being an issue—they conflated multifamily-ZONED property with multifamily buildings.
jul 16, 2025, 6:05 am • 8 0 • view
Ah okay I thought this had to be fixed in the ordinance and was later resolved. Good to know it was just an industry worry that we have moved passed. This be a great piece for someone in the area to write about because I’m sure this concern will pop up again somewhere else nationally.
jul 16, 2025, 6:13 am • 3 0 • view
I’ll try to ask a few more questions from some of my contacts. To be completely honest I had completely forgotten that we had this little freakout.
jul 16, 2025, 6:20 am • 2 0 • view
Too much to keep track of!
jul 16, 2025, 6:41 am • 1 0 • view
Lmao i love that for them
jul 16, 2025, 6:12 am • 5 0 • view
Like, yes, but how does a zoning change impact this? It’s the same regardless of the zoning!
jul 16, 2025, 6:24 am • 2 0 • view
It's the SimCity fallacy, that zoning results in built environment changes instantly. I've never seen it applied so absurdly.
jul 16, 2025, 6:26 am • 2 0 • view
Exactly!! Like I said, I need to check in and see if there was ever any merit to anything they were saying, but in practice, people are buying homes and building sixplexes and nothing odd seems to be happening in either submarket.
jul 16, 2025, 6:29 am • 4 0 • view