March 25, 2008

Perata's foreclosure bill moves forward

Senate Leader Perata's latest bill on foreclosures, similar to one that came one vote from passage in the Senate earlier this year, has cleared the Judiciary Committee. Unlike the original bill, SB 926, the new bill, SB 1137, allows lenders to speak with borrowers by phone rather than in person before filing a notice of default. The new bill also deletes a proposed requirement that lenders notify borrowers in writing of pending changes in interest rates. Perata said that after discussions with the industry, he realized that rates on some loans fluctuate so frequently that the information he wanted to require would have been out of date by the time it arrived in the mail.

The bill also requires financial institutions to maintain foreclosed properties and give tenants 60 days, rather than 30 days, notice of an eviction.

Posted by dweintraub on March 25, 2008 3:36 PM