Perata-Bass legislation on home loan foreclosure crisis sent to governor

Legislation to help Californians ensnared in the subprime home loan foreclosure crisis was forwarded to Gov. Arnold Schwarzenegger's desk for signature or veto this week.

Senate Bill 1137, authored by senate President pro Tem Don Perata (D-Oakland) and Assembly Speaker Karen Bass (D-Los Angeles), would require lenders to contact property owners to attempt to avoid foreclosure, provide tenants additional time to move from a foreclosed property and mandate maintenance of foreclosed properties to diminish the impact on the value of neighboring homes.

"SB 1137 will make a difference right away," Perata stated. "This legislation is an important piece of the puzzle of how to best protect California homeowners and communities from the fallout from the nation's mortgage crisis."

May, the most recent month available for statistics, California lead the nation with 71,930 foreclosure filings. Of the nation's 10 worst cities for foreclosure filings, seven are in California, with Stockton at the top of the list. One in every 75 homes received a foreclosure filing in Stockton in the month of May.

The other California cities in the nation's top 10 for foreclosures in May were Merced, Modesto, Riverside-San Bernardino, Vallejo-Fairfield, Bakersfield and Sacramento.