SACRAMENTO, Calif. (7/14/08)--California Gov. Arnold Schwarzenegger signed Senate Bill 1137 regarding residential mortgage foreclosure procedures into law Tuesday. The legislation applies to loans made from Jan. 1, 2003, to Dec. 31, 2007, secured by owner-occupied residential real property. SB 1137 requires:
* A mortgage lender or servicer to contact a borrower or satisfy due diligence requirements before filing a notice of default for assessing the borrower’s financial situation and exploring options to avoid foreclosure, according to California Department of Financial institutions (DFI); * That when a notice of sale is posted on the property for sale, the lender or servicer must mail a specific notice in English and five specific languages to the resident of a property subject to foreclosure sale; and * The legal owner must maintain vacant residential property purchased at a foreclosure sale or acquired through foreclosure. Fines of up to $1,000 per day for failure to maintain the property can be assessed.