A new California homeowner bill just passed that will require banks and other mortgage servicers to communicate with the widowed spouses and survivors of homeowners so that they may keep their family homes.
Senate Bill 1150, the California Homeowner Survivor Bill of Rights adds to the 2013 California Homeowner Bill of Rights which originally established key mortgage and foreclosure protections for homeowners. The law also restricted dual-track foreclosures, improved borrower and mortgage servicer communication and also required servicers to document their right to foreclose.
Attorney General Harris reached a $20 billion settlement with the nation’s five largest banks in 2012. She then created a Mortgage Fraud Strike Force within the California Department of Justice to investigate and prosecute misconduct at all stages of the mortgage process.
Attorney General Harris had said, “Those who suffer the loss of a loved one should not also face the possibility of losing their home. I applaud the Legislature for passing this critical legislation that will protect surviving family members from wrongful foreclosure.”
The bill was authored by Senators Mark Leno (D-San Francisco) and Cathleen Galgiani (D-Stockton), and sponsored by the California Alliance for Retired Americans, Housing and Economic Rights Advocates, and California Reinvestment Coalition and many advocacy organizations throughout the state.