(Oakland) – Assemblymember Sandré R. Swanson (D-Oakland) participated in a signing ceremony for SB 1137 (Perata), legislation which he strongly supported.  The bill would provide additional protections to homeowners and renters who have been impacted by the home mortgage crisis.  The ceremony took place in the Fruitvale neighborhood of Oakland earlier today.

“My district has been hit particularly hard by the home mortgage crisis.  Many homeowners and tenants are losing their dwellings because efforts to contact them are inadequate, and information that could help them remain in their homes rarely given. SB 1137 will address both of these issues by creating vital protections for homeowners and renters.  Lenders will now have to make a good faith effort to contact a homeowner before starting foreclosure proceedings, and give notice further in advance to tenants of a property going into foreclosure.  Best of all, lenders will be required to provide information for how those behind on their mortgages can get help,”  Assemblymember Swanson stated.

Among its provisions, SB 1137 stipulates that:

• Lenders make a good faith effort to contact borrowers before issuing a Notice of Default.  (NOD)  The methods and timing of the contact are spelled out in the bill.
• Requires lenders to provide a toll-free number for Housing and Urban Development (HUD) certified housing counseling agencies. 
• Requires that a NOD shall include a record of the lender’s attempts to contact the borrower.

Additionally, SB 1137 requires that banks and other institutions in possession of foreclosed properties maintain those properties, or else face daily fines of up to $1,000 per day per violation.  

“Mass foreclosures have created a new urban blight in our communities, which endangers the safety of those still living in those neighborhoods, and strains law enforcement resources in the area.   Banks and other lenders will now have an obligation to maintain their properties, and prevent such blight from occurring,” Assemblymember Swanson noted.

“Owning a home is a fundamental to the American dream.  In these economic times of crisis, it is important for the Government to take action to protect homeowners and neighborhoods.  This legislation is a strong step in that direction, and I was proud to support it,” Swanson concluded.

The legislation was passed on an urgency basis (requiring 2/3rds support of both Assembly and Senate members) and thus goes into effect immediately.