One of the worst parts of going through a foreclosure is the sense of helplessness. There's a lot of waiting and hoping and let-me-transfer-you-over run-arounds. The process feels closed and distant, marked by indifferent operators and vague brief loan modification denial letters.
Yesterday the California State Assembly and Senate passed legislation that gives homeowners key protections against foreclosure.
The bill has holes, to be sure: It doesn't cover second-lien mortgages (which banks are less likely to modify in certain cases) and it doesn't give banks incentives to offer more principal reductions (which is unrealistic given the budget deficit). But it does address homeowners' fundamental obstacles in the foreclosure crisis, and it establishes perhaps the nation's toughest regulations on the loan modification process.
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