Brown signs bill to aid widows
California Gov. Jerry Brown on Thursday signed a bill that’s designed to give widows and widowers a better shot at saving their homes when they fall behind on mortgage payments.
Senate Bill 1150 boosts protections against foreclosure for surviving spouses who own their home but are not on its mortgage note.
Consumer groups say survivors — including those who inherit property after a death — face considerable resistance from loan servicers when trying to obtain modifications.
Servicers will generally accept a surviving spouse’s loan payments, but red tape involved in proving ownership can stall a modification while foreclosures proceed, according to advocates.
“Facing foreclosure after the loss of a loved one can be devastating. The governor’s approval of SB 1150 will help keep more families in their homes and reaffirms California as a nationwide leader in protecting vulnerable homeowners,” said Sen. Mark Leno (D-San Francisco), the author of the bill along with Sen. Cathleen Galgiani (D-Stockton).
Widows and widowers will now have many of the rights borrowers already have under the California Homeowner Bill of Rights. Among those is a ban on dual tracking — the practice of negotiating with clients to modify a mortgage while simultaneously pursuing foreclosure.
The Consumer Financial Protection Bureau recently imposed similar federal rules on loan servicers nationwide, leading the banking industry to call the California bill unnecessary.