Schwarzenegger Signs California Foreclosure Relief Bill
Governor Schwarzenegger has signed a bill that aims to stem the tide of foreclosures in the state. The new law requires lenders to contact homeowners by phone before sending a notice of default. The goal is for the bank and the borrower to work something out to avoid foreclosure. Senate President Pro Tem Don Perata wrote the measure. He says it represents significant bi-partisan progress.
Perata: This we believe is a major step forward and will be a work-out opportunity and some who would be foreclosed upon thrown out of their homes will be able to stay.
The bill also includes a provision allowing local governments to fine lenders who don't maintain foreclosed properties. And it requires that renters be given two months move-out notice if they're living in a property that's being foreclosed. Most of the bill's provisions will take effect in 60 days.
