California Foreclosure Bill – Good or Bad?
Two bills were presented to Legislators and both failed a
lthough they are not completely dead. Supporters of the bills felt so adamantly about it that they packed the State Capitol, and new hearings have already been scheduled.
Tell me what you think:
The first bill is called the California Homeowners Act and it would make it unlawful for a bank to begin foreclosure proceedings on a property if the homeowner was under review for a loan modification.
According to this bill the lender has to give you an answer on your loan modification first.
The second bill would be to levy money ($20,000 to be exact) for each foreclosure initiated by the banks to aid in community service areas, local schools and fire departments which have lost property taxes from homeowners going into foreclosure.
Some points to take into consideration are that most loan modifications ultimately do not modify the loan enough to truly help you with the payment. We’ve seen modifications come back with only a few hundred dollars knocked off of the original monthly payment. Hardly enough for someone who has suffered a job loss, pay cut, disability, etc.
Possibly instead of losing time on waiting for a loan modification answer, the new bills could put pressure on the banks to shorten the process and give a quicker answer.
What do you think of these bills? Would they be good or bad for homeowners and the San Diego real estate market?
