July 23, 2013 > Bill to protect homeowners signed by Governor
Bill to protect homeowners signed by Governor
Submitted By Sergio Reyes
Governor Jerry Brown signed bipartisan legislation authored by Senate Majority Leader Ellen M. Corbett (D-East Bay) on July 11, 2013 that strengthens existing deficiency protections for borrowers after losing their homes in foreclosures. Co-sponsored by the Housing and Economic Rights Advocates and the California Reinvestment Coalition, SB 426 prohibits deficiency collections and adverse credit reporting on non-recourse loans following a non-judicial foreclosure. In spite of existing anti-deficiency protections for residential borrowers in California, some creditors and debt collectors continue to attempt to collect debts by non-judicial means after a foreclosure.
SB 426 was supported by the California Association of Realtors and the Center for Responsible Lending during the legislative journey.