California Residents Receive Foreclosure Relief
Ever since the subprime mess erupted, California has consistently been among the states with the highest foreclosure rate. The number of foreclosure filings increased by so much that the state government finally recognized it as a threat to the local economy. Even local residents and non-profit organizations have teamed up to provide help to troubled homeowners facing foreclosure.
The latest effort to curb the foreclosure crisis in California is the approval of a new legislation. Signed by Governor Arnold Schwarzenegger, the SB 1137 requires mortgage lenders to: contact homeowners in order to avoid the filing of foreclosure, provide enough time for tenants to move out of the foreclosed property and maintain the foreclosure homes to prevent the devaluation of neighboring houses.
Considered to be an ‘urgency bill’, the said legislation contains several provisions that will take effect almost immediately. Although it is a big step towards finding a long-term solution to the foreclosure crisis, local officials believe that the approval of SB 1137 is just one small step. Despite this, the state government believes that they are on the right track when it comes to banning abusive lending practices.
Of course, for thousands of distressed homeowners, the new law is very much welcome. Many homeowners who lost their homes to foreclosure did not fully understand their situation until too late. Some of the mortgage lenders were not sympathetic to their situation and chose to file foreclosure rather than negotiate new mortgage terms. With the signing of the new law, homeowners will now have the right to fight for their home.
A number of government officials and local representatives were present at the signing of the new law including the authors Senator Don Perata, Assembly Speaker Karen Bass and Joyce Hicks, a local resident and organizer of the non-profit organization ACORN. She is believed to be the inspiration behind the new law.
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