Governor signs foreclosure protection bill

July 8, 2008 7:33:18 PM PDT
Gov. Arnold Schwarzenegger came to Oakland today to sign a bill authored by state Senate President Pro Tem Don Perata that requires lenders to contact homeowners and explore restructuring options before initiating the foreclosure process.

Schwarzenegger and Perata, D-Oakland, said the bill, SB 1137, will provide tenants with double the amount of time now afforded to them to move from a foreclosed property, and will prevent California's neighborhoods from becoming run-down by requiring owners to maintain foreclosed properties.

At a news conference at The Unity Council on Fruitvale Avenue, Schwarzenegger said, "Foreclosures not only devastate families, they hurt neighborhoods and depress our economy and our budget."

He said, "I am proud to announce that we are giving Californians one more tool to help them stay in their homes - without government subsidies."

According to Schwarzenegger's office, the Department of Corporations announced last week that the number of loan modifications in California increased significantly in the months of April and May compared to January.

Schwarzenegger said that means state action to work with lenders is helping Californians find more workable loans and keep their homes.

Perata and Oakland Mayor Ron Dellums joined Schwarzenegger at the news conference at the Unity Council, which is a community advocacy, social service delivery and economic development group for Oakland's Fruitvale district.

The Oakland City Council recently passed a resolution urging Schwarzenegger to sign Perata's bill.

In a related development, U.S. Rep. Barbara Lee, D-Oakland, said today that she will tour Oakland neighborhoods on Saturday to assess the foreclosure crisis and discuss legislative efforts at the federal level to address the problem.

Lee said she will be joined by Oakland City Council members Larry Reid and Desley Brooks, as well as representatives from the Association for Community Organizations for Reform Now (ACORN), Urban Strategies and the U.S. Department of Housing and Urban Development.


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