Calif. Senate Passes Foreclosure Prevention Bill

Posted by Orb Staff on June 07, 2010 No Comments
Categories : Mortgage Servicing

rnia's Senate Bill 1275 (S.B.1275), which allows for limited remedy for certain eligible homeowners whose homes are erroneously sold at foreclosure, was passed out of the chamber last week by a 21-12 vote. The legislation will now be heard in the Assembly Banking Committee. Authored by Sen. Mark Leno, D-San Francisco, and Senate President Pro Tem Darrell Steinberg, D-Sacramento, S.B.1275 would allow eligible homeowners to seek limited damages that are directly related to the severity of a servicer's errors, or, in some cases, would allow homeowners to reverse foreclosure sales and require servicers to restart the foreclosure process. The bill would also prevent servicers from foreclosing on homeowners who have requested modifications until a decision has been made and the homeowner has been notified. Currently, servicers can proceed concurrently with foreclosure actions concurrent and loan modification negotiations – a ‘dual track’ process that housing advocates say can cause confusion among borrowers. ‘Simple fairness dictates that no one should lose their home while they are in the middle of trying to save it,’ Paul Leonard, director of the California office of the Center for Responsible Lending, said in a statement. SOURCE: Center for Responsible Lending. [link=http://dist03.casen.govoffice.com/index.asp?Type=B_PR&SEC={F0DFD1A5-1C7B-4F09-9F09-C48A423D1072}&DE={BF757EAB-EC4F-4A80-955A-A7611D8E9F27}]Office of Sen. Mark Leno

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