Last week I mentioned that the California legislature had sent a bill to Governor Schwartzenegger providing for some preventive action, as well as tenant protection in a foreclosure.
Yesterday, July 8, the governor signed the bill, SB1137, into law. It forces lenders to contact defaulting homeowners sooner in the foreclosure process to attempt to work out some non-foreclosure resolution to the problem where possible. It also requires that once a property is foreclosed upon, the lender must provide the tenants 60 days notice to move instead of the previously mandated 30 days.
It also provides local communities the right to pass ordinances that would require the foreclosing lender to maintain the outside appearance of the property so as to avoid urban blight that often comes when a home remains vacant for a long period.