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California Senate Bill 1137
July 9, 2008
"Losing a home to foreclosure is a financial and also an emotional crash that takes sometimes years to overcome," Schwarzenegger said. "Foreclosure not only devastates families, but it hurts neighborhoods and it depresses our economy and our budget, and we lose a lot of jobs, of course."
Today Gov. Schwarzenegger signed into law a bill protecting California homeowners. The first of it's kind, this bill introduces sweping changes to protect Californians from loosing their homes. As mentioned by the Govenor, loosing your home to foreclosure "is a financial and emotional crash that takes years to overcome". Everyone looses when a home is foreclosed upon: homeowner, lender and neighborhood. The state of California is taking steps to try and attempt to save people's homes. These homes were bought with loans made by banks and for one reason or another the homeowner can not afford to keep the house any longer. Some had adjustable rate mortgages, some lost their jobs others just got in over their heads.
What ever the reason is, it's affecting everyone. Unlike previous bills, this bill did not face opposition and had bi-partisan support. Under this new law, lenders will be required to contact homeowners to (prior to foreclosing) and attempt to work something out.
The monthly number of home loan modifications has risen since January 2008, per the California Department of Corporations. California home lenders modified 9,448 loans in April 2008 and 8,686 loans in May 2008, compared with 5,812 in January 2008.
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