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California Foreclosure Reform SB 1137 - Approved by Gov. Scharzenegger today

Senate Bill 1137 was approved by the governor today. This bill was actually opposed by the California Association of Realtors and a coalition of other organizations - they felt the bill was too broad and posed too many legal compliance issues. Not sure if the bill was amended from the original scope...

There are some needed provisions in this bill - such as 60 day notice to vacate to tenants of foreclosed properties. Other highlights include that the lender may not file a Notice of Default until 30 days after contact is made with a borrower (or documented several failed attempts to contact the borrower) and a meeting (in person or via phone) is conducted to review alternatives to foreclosure. You can read the entire bill here.

Posted Tuesday Jul 08
( 07/29/08 01:42AM ) — Steven Pawera

I'm all for helping homeowners avoid foreclosure because..  oh yeah.. that's what I do.  It's called a short sale.  But requiring several attempts at contacting the homeowner?  That complete lack of personal responsibility is what got us in this mess in the first place.  If someone doesn't WANT help, don't tie the bank's hands.


I can't wait to see the lawsuits stemming from this.  What a great idea: when we get to the part of the homeownership cycle the homeowners don't like (foreclosure after not paying their mortgages), let's change the rules under which those CONTRACTS (yes Virginia.  There is a Santa Claus.  And a mortgage is a contract) were written.  Let's compell the lender to hold on to a devaluing asset longer, so it will be worth even less when he can finally sell it.  But it should all work out ok because..


its not like it will really hurt the lender.  All those problems loans are going to be sold to the FHA, so when the buck finally stops, it gets stuck to (you saw this coming, huh?).. the TAXPAYER!


And those poor investors, I mean speculators.  those poor speculators the government wont rescue?  They meant just those speculators who bought houses with mortgages.  The investors who bought $million blocks of fanniemae and freddiemac?  They're gauranteed to me taken care of by.. (this is getting old) the taxpayers.  You thought I was going to say 'government'?  what's the difference when the bill has to be paid?


One question: with all my email subscriptions to CAR, CAR legal, the Beverly Hills board, why have I not received any updates or emails on SB1137?


 


 

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