New Bill Helps Families Facing Foreclosure

By Osvaldo Castillo

El Observador

Governor Schwarzenegger recently signed a bill that will offer some of the nation's strongest legislative solutions to mortgage crisis by reforming the foreclosure process in California.

Senate Bill 1137, which was co-drafted by the ACORN organization, will go into effect immediately to prevent families from being evicted from foreclosed properties.

The bill will benefit over 1 million families including homeowners, tenants and local communities in California and will go into effect within 60 days, said ACORN.

The bill will benefit homeowners by requiring lenders to contact borrowers prior to filing a notice of default, which provides time for lenders and borrowers to discuss possible loan options.

Tenants living in properties facing foreclosure will be given 30 to 60 days to relocate. According to ACORN, many tenants are being illegally and unfairly forced out. This bill will give tenants more time to prepare to move and find alternative affordable housing.

The bill will also help local communities impose a fine of up to $1,000 a day on banks who do not take responsibility for properties left abandoned by a foreclosure.

How ACORN Can Help Families

The organization can provide one on one mortgage loan counseling, first time home buyers classes and help families obtain affordable mortgages through ACORN's lending partners. The organization also provides classes on foreclosure avoidance and prevention fairs.

For more information contact your local ACORN office. Or visit www.acorn.org      

You can also contact your elected officials and urge them to make bankruptcy laws fair to protect homeownership.∆