CALIFORNIA'S FORECLOSURE RELIEF BILL BECOMES LAW
The California State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California.
Highlights of the new law are as follows:
- Contact Between Lender and Borrower: Effective on or about September 8, 2008 a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure.
- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. A civil fine up to $1,000 per day for any violation may be imposed by a governmental entity, as long as the owner has been given notice and an opportunity to remedy the violation.
- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days.
These requirements will remain in effect until January 1, 2013.
Read the full text of Senate Bill 1137 (Perata) at www.leginfo.ca.gov