State Approves New Foreclosure Rules
Santa Clarita homeowners will have more options when it comes to foreclosing.
Governor Arnold Schwarzenegger has signed a new Senate Bill that creates new steps for banks to take before they can foreclose on a home in California.
The new law will require lenders to get in contact with homeowners and look into restructuring options before officially entering into the foreclosure process.
Also, it will provide tenants with 60 days to move from a foreclosed property, up from the previous 30 day allowance. .
In an effort to help ease the trend of foreclosed homes falling into disrepair, lenders will additionally be responsible for the upkeep of properties they take over.
"Foreclosures not only devastate families they hurt neighborhoods and depress our economy and our budget," Governor Schwarzenegger said. "So, I am proud to announce that we are giving Californians one more tool to help them stay in their homes - without government subsidies. And I am confident that with this legislation we will help even more Californians keep the American Dream of homeownership alive."
But Governor Schwarzenegger also issued a warning for homeowners.
“I want to remind homeowners that they also have responsibilities,” he said. “Don’t run away when someone reaches out to you. If someone sends you a letter, respond. Banks want to avoid foreclosure as much as you do”