California bill requires lenders to maintain foreclosed homes
Banks could be fined $1,000 a day for failure to maintain foreclosed properties if legislation that passed the state Senate Monday becomes law. The bill moves on to the Assembly and would take effect as soon as it can be signed into law. An earlier version defeated in January was opposed by banks and mortgage companies.
MAKING SENSE OF THE STORY FOR CONSUMERS
- Communities throughout inland California have been hit hard by properties that are left uncared for after a family moves out due to foreclosure. These untended properties tend to negatively affect the value of surrounding properties and entire neighborhoods.
- Hardest hit have been Merced, San Joaquin, Stanislaus, Sacramento and Yuba counties. In Merced County, one in 737 residents has been affected. In Sacramento County, it's one in every 1,003 residents.
- The proposed law, sponsored by Sen. Dom Perata, would give local governments the ability to fine lenders after providing 14 days' notice to remedy a maintenance problem. Bank opposition was eliminated after provisions requiring lenders to give four month's notice of interest rate increases and requiring face-to-face meetings before foreclosing were removed.
To read the full story, please click here: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/04/28/financial/f145807D20.DTL&hw=Calif+bill+requires+lenders&sn=001&sc=1000
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I don't quite understand what a remedy problem is, I don't trust for Don Perata