S.B.926, a bill introduced by California Senate President Pro Tem Don Perata, D-Oakland, intended to aid borrowers affected by or in danger of foreclosure, failed to clear the Senate floor. The bill received 26 ‘aye’ votes – one short of the two-thirds majority needed for passage.
S.B.926 would have required lenders to meet in person with borrowers to discuss restructuring options filed unless the borrower chooses to meet by phone. Borrowers must also be provided a list of certified financial counselors. According to Perata's office, the legislation steps up notice requirements, giving homeowners more advanced warning that a change in their mortgage payments is coming.
Additionally, to help limit the impact of a foreclosure on the surrounding neighborhood, the bill stated that servicers must maintain foreclosed properties or face a $1,000-per-day fine.
Perata says he plans to reintroduce the bill and bring it to the Senate floor again as an urgency measure. ‘We cannot stand idly by as the mortgage crisis devours communities across California,’ he states. ‘This legislation would give homeowners more advanced warning that a foreclosure may be coming and provide them the tools to help prevent it from happening.’
