“The bills, which got the endorsement of Governor Jerry Brown yesterday and will go into effect January 1”


California Passes Significant Protections Against Illegal Foreclosure Processes

Pressured by a coalition of activists and state Attorney General Kamala Harris, the California legislature completed a months-long project yesterday to significantly improve its foreclosure process. The measure gives homeowners a new right to sue over fraudulent practices, ends dual tracking – where servicers process foreclosures while negotiating loan modifications – and extends a single point of contact at all borrowers. The state Assembly passed the companion bills by 53-25, with the Senate passing by 25-13.

The bill is crucial, because according to the latest statistics, more than 362,000 California homes are in foreclosure or seriously delinquent, and another 700,000 are at risk. A tough anti-fraud policy in the nation’s largest state will create ripple effects through the mortgage industry and could lead to an overall change in practices.

“Each day’s not equal in the lives of these homeowners,” said Kamala Harris, the Attorney General who pushed for the changes to state foreclosure law, in an interview with FDL News. She stressed the need to set up clear rules for foreclosures that enable the borrower to get a fair chance and for violaters of the law to face consequences.

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