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March 25, 2008

State Senate foreclosure bill on the move

SB1137, which makes mortgage lenders and servicers meet, at least by phone, with struggling borrowers before initiating foreclosure, passed the state Senate Judiciary Committee this afternoon. The bill would also make lenders maintain properties after they foreclose to minimize impacts on neighborhoods. The original version of the bill made lenders meet in person with struggling borrowers, but it failed to pass the Senate by a single vote.
The new bill compromises on the personal meeting to ensure, as its author, Senate President Don Perata says, that the measure is workable. It also has to pass the Assembly and be signed by the governor to become law.