From the Scheer Law Group, LLP
Re: Passage of AB 278 and SB 900
Just a few minutes ago, the California’s Senate voted to pass Homeowner Bill of Rights, legislation -The California Foreclosure Reduction Act— AB 278 and SB 900 were passed by the House and Senate . The bill now awaits Governor Jerry Brown’s signature.
This legislation will change foreclosure law as you know it. In essence, it will expand upon current SB 1137 (pre foreclosure loss mitigation mandates), which will expire at the end of the year, and will add significant additional restrictions that must be complied with in order to foreclose on covered loans.
Provisions are designed to eliminate “dual tracking” (foreclosing while negotiating loan modifications) and “robo signing” and to greatly enhance the obligations of lenders, servicers and trustee’s to provide more disclosure and information in any non-judicial foreclosure.
All lenders and servicers and foreclosure trustees must prepare, learn the provisions and restrictions, and avoid violations . There are provisions for damages and attorney’s fees in the legislation.
SLG will provide more detailed advisements in the coming weeks. Absent last minute amendments that I am not aware of, the legislation will become effective on 1.1.13, so there is time to prepare.
Please take this legislation seriously. Unless it is vetoed, it will change the way foreclosures occur in the State of CA. A veto is not likely.