California foreclosure reform moves forward
Seven bills reforming some foreclosure rules passed committees in the California state legislature this week.
The bills were introduced in February. One set of bills extends protections to tenants, giving them 90 days before eviction after the foreclosure sale of the property. Another increases penalties to banks that fail to maintain blighted homes.
Servicers would be required to provide documentation to the borrower establishing its right to foreclose before filing, under other passed bills. Evidence of ownership and chain of title must also be shown to the borrower.
Two other bills charge servicers a $25 fee for every notice of default recording. The money will fund investigations for California AG Kamala Harris. Another piece of legislation passed by committee allows Harris to convene a grand jury to investigate financial crimes in different jurisdictions.
"All Californians have been impacted by the toll the mortgage and foreclosure process has taken on our neighborhoods," Harris said. "Our California Homeowner Bill of Rights will provide relief for homeowners, tenants and communities. I thank the authors and supporters of these important bills."