The state Senate has approved legislation giving homeowners facing foreclosure some new rights to deal with lenders.
Wednesday's bipartisan 32-8 vote sent the bill (Senate Bill 1137) by Senate President Pro Tem Don Perata to Gov. Arnold Schwarzenegger's desk, and he indicated he'll sign it.
"We need many tools to help Californians through this housing crisis," Schwarzenegger said in a statement even before the final vote, "and this bipartisan legislation provides one more tool by giving borrowers the critical time needed before a foreclosure begins to work with their lenders and stay in their homes.
"We all benefit when families are able to remain in their homes, so I continue to encourage both borrowers and lenders to communicate and work together because it allows Californians to hold on to the American Dream of owning a home."
Perata's bill contains a number of provisions giving homeowners who face foreclosure more time in which to contact lenders and seek loan modfications and gives local governments more power to fine lenders who allow foreclosed properties to deteriorate.
It's the first in what Democratic leaders say will be a flurry of legislation designed to ease the impacts of widespread foreclosures on homes purchased with subprime, adjustable mortgages. But a conflict between the two legislative houses has arisen on details of what should be done.
A package of Assembly bills was stalled in a Senate committee amid sharp disagreement on details. However, Perata and Assembly Speaker Karen Bass pledged Wednesday that the differences will be quickly resolved.
"I'm very confident we are moving toward resolution," Perata said.
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