Mortgage Ventura 805.444.4354

The California Senate passed a mortgage bill aimed at heading off foreclosures by requiring lenders to communicate with borrowers when their loan is in danger of defaulting. 

The legislation, which passed on a 32-8 vote, would require lenders to give homeowners more — and earlier — warnings that they were heading toward default. The bill, SB 1137, will take effect immediately once it is signed, as expected, by Gov. Arnold Schwarzenegger.

SB1137 will make a difference right away,” said its author, Senate President Pro Tem Don Perata (D-Oakland). “This legislation is an important piece of the puzzle of how to best protect California homeowners and communities from the fallout from the nation’s mortgage crisis.” 

Perata and the leader of the state Assembly, Speaker Karen Bass (D-Los Angeles) said they hoped that passage of the foreclosure-prevention bill would create enough legislative momentum to resurrect a handful of related measures that had been killed or watered down in the Senate two weeks ago.

The Assembly bills ran into solid opposition from mortgage SB1137 will make a difference right away,” said its author, Senate President Pro Tem Don Perata (D-Oakland). “This legislation is an important piece of the puzzle of how to best protect California homeowners and communities from the fallout from the nation’s mortgage crisis.”