Bill Aims at Easing Foreclosure Process
A measure aimed at easing the foreclosure crisis in California is on its way to the Governor’s desk.
Wednesday, July 2, 2008
The measure by Senate President Pro-Tem Don Perata will require lenders to contact property owners in danger of foreclosure. They must keep trying-- at least three attempts by phone. Perata says many struggling homeowners have had difficulty reaching someone to talk to about their situation.
“We originally wanted to make this face to face but the practicalities are that at least you have a conversation. And that the direction would be to try to come up with a workout plan. Not simply, hi, how are you, you’re foreclosed, bye…”
The bill applies to loans taken out between 2003 and 2007. It also says local governments can impose fines of up to one-thousand dollars a day on banks and lenders if they don’t keep up their properties. Tenants in foreclosed properties will also be given additional written notice—of sixty days—to leave. In a statement, Governor Schwarzenegger indicated he would sign the bill.