Bill brings relief to foreclosures

By MARTÍN E. MARTÍNEZ / Vida En El Valle
(Published Wednesday, July 16th, 2008 09:10AM)

SACRAMENTO -- People on the verge of losing their homes due to the real estate crisis could soon get assistance from credit institutions in making payment arrangements under new legislation.

Gov. Arnold Schwarzenegger approved SB 1137, which was authored by state Sen. Pro Tem Don Perata. The bill requires lenders to contact borrowers to work out payment agreements before initiating the mortgage foreclosure process.

Schwarzenegger said he signed the bill because foreclosures not only destroy families but also damage the community and at the same time depress the economy and the budget.

"We are giving Californians one more tool to help them stay in their homes without government subsidies," Schwarzenegger said.

According to the governor's office, the number of people benefitted by this initiative increased significantly during the months of April and May in comparison with January, when the number was relatively low.

Perata said the new law will offer an immediate solution for all those people who fear losing their homes.

"The national real estate and mortgage crises have had an enormous effect on the California economy, and this is an important measure for better protecting homeowners and their communities," Perata said.

"We're very pleased to know that the governor finally signed this law because now California families will be better protected; we're going in the right direction to help families on the verge of losing their homes," said Ronald Coleman, campaign president for ACORN.

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