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Foreclosure Prevention Bill Passes California Senate
Kerri Panchuk | 07.03.08The California Mortgage Bankers Association applauded the state Senate's passage of Bill 1137 on Wednesday.
The bill, which passed the House in late June, is designed to give distressed borrowers more protection by giving those in trouble more notice before eviction-namely 60 days rather than 30 days. The bill also would increase the requirements for the maintenance of foreclosed properties to ensure property values do not suffer because of fledgling properties.
In a press statement, the association said, "SB 1137 is an excellent example of the good work that can be done when all interested parties work in good faith to develop solutions that help Californians facing challenges arising from the downturn in the state's real estate market."
Under terms of the bill, financial institutions that hold foreclosed properties can be fined up to $1,000-per-day if maintenance problems on properties are not fixed within 14 days. The bill will now go to the desk of California Governor Arnold Schwarzenneger.
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What are people thinking????? I don't understand how giving occupants more time to get out of the house they have already stopped making payments for a minimum of four months can get an extra two months after the home has been sold to the trustee.
Also, you know the occupants are not keeping the property up. Are they going to be fined for not keeping up the property? No, it will fall on the US - the REO listing agents, the asset managers and the banks. And guess what, now that the occupants get more time, the standards for upkeep are going to be tougher now too. I love that.
This bill makes no sense to me other than it makes the politicians look good for an election year. Bravo. Good job Govenator!! Smart thinking CA Senate!
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