Reporting Charles Feldman
Filed underBusiness, Consumer, Economy, Heard On Radio, Local, News, Syndicated Local, Watch + Listen
LOS ANGELES (CBS) — There may be more relief on the way for struggling homeowners in Southern California.
KNX 1070′s Charles Feldman reports the idea of a “Bill of Rights” is aimed at preventing the sort of foreclosure abuses seen both here in the Southland and nationwide.
The legislation is aimed at preventing creditors from selling a house while its owners are also negotiating a loan modification and would impose penalties on creditors who “robo-sign” foreclosures without proper documentation.
California Attorney General Kamala Harris, who is sponsoring the legislation, wants to mandate improved transparency and disclosure by creditors.
“Invariably we’ve met countless people who in that process, working in good faith, find that someone’s knocking on their door saying, ‘You’re house is about to be sold’,” said Harris.
An estimated 500,000 homes are currently in some stage of the foreclosure process in the state of California, Harris said.
The other proposed measures in the bill would require creditors to provide just one contact person for the homeowner to deal with throughout any modification or foreclosure process.
Renters would also benefit from the legislation by receiving up to 90 days before being required to vacate any foreclosed property.
Earlier this month, Harris signed a $26 billion settlement with five of the nation’s biggest lenders over questionable foreclosure practices in a deal that was expected to help those who are struggling to pay their mortgages.