New CA Foreclosure Law Endorses Mortgage Modifications

Gov Schwartzenegger signed into law today Senate Bill 1137, which aims to prevent foreclosures by forcing banks to offer home owners mortgage modifications . It also forces owners of homes taken in foreclosure or purchased out of foreclosure to keep them tidy or cities can impose a $1000 PER DAY fine. Landscapers in CA are in fat city!

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Banks are also supposed to have the homes they own insured and paid current on property taxes, which should have been included in the law. They also must pay home owner association dues in many cases.

The law, which takes effect immediately prohibits lenders from filing a Notice-of-Default until 30-days after contacting the borrower or making legitimate attempts to do so regarding a mortgage modification.