For many homeowners on the brink of foreclosure Senate Bill 1137 in California is just in the nick of time. Recently, the State Legislature of California enacted the foreclosure reform law. Lenders will not be able to just file a default and take away homes as they did at one time. With this law in place, all lenders will have to contact the homeowner and work together with all options available at least 30 to 60 days before they can file a notice of default to begin foreclosure procedures. Homeowners upon foreclosure will have from 30 to 60 days to move from the foreclosed property unless there are other laws in place that overturn this law.

Along with this bill, any person that does purchase a home that is in foreclosure is required to do all upkeep on the exterior of the vacant property.

This bill offers a ray of hope for homeowners that have not fallen prey to the foreclosure epidemic in that if there is a way for the lending company to work with the homeowner, the homeowner will be able to keep their home.

Now, comes the alternatives to foreclosure. If a homeowner is in a home that is out of their limits to pay back the mortgage for any number of reasons such as illness that has landed the breadwinner out of work, then working out a solution will be a difficult one.

The best thing to do when contacted is to talk with the lending company. Many people feel as if they have no hope and do nothing to try to keep their. This is the number one mistake. Talk with the lending company, explain your situation, and learn what options you have available.

This entry was posted on Thursday, July 17th, 2008 at 5:27 am and is filed under Homes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.