![https://img.particlenews.com/image.php?url=4XOxFt_0sdtysUz00](https://img.particlenews.com/image.php?type=thumbnail_580x000&url=4XOxFt_0sdtysUz00)
On Tuesday, Assemblywoman Pilar Schiavo, D-Chatsworth, announced that AB 2424, a pivotal bill aimed at protecting homeowners facing foreclosure, often at times when they are at their most vulnerable, has successfully passed out of the Assembly Committee on Banking and Finance and the Assembly Committee on Judiciary.
“Often in too many real-world situations when people are at their most vulnerable – like after the passing of a partner, when they’re experiencing dementia or other health challenges, or in the middle of a divorce, 120 days of failure to make a mortgage payment is simply not enough time to correct the situation or to make arrangements to either bring the loan current or to otherwise sell the property,” said Assemblywoman Schiavo . “For some families, a home is their only substantial asset. This legislation will reform foreclosure rules when payments have fallen behind due to unforeseen circumstances, seeking to preserve a portion of the lifetime investments in the property while assuring the banks get repaid,” said Schiavo.
Currently, when a homeowner can’t pay back their mortgage loan, the lender is authorized to sell their home at an auction; first, the lender takes back the loan balance, and the homeowner receives any surplus from the sale.
In the process, the homeowner often loses tens, or even hundreds of thousands of dollars when banks sell for extremely low prices.
On the other hand, investors frequently benefit from these auctions, making money on the backs of the homeowners who are losing money in the process.
“ AB 2424 still ensures the mortgage holder gets repaid, and it also seeks to balance the equities, so that both the bank and the owner of the property get a fair share of their interest in the value of the home,” said Schiavo .
In many instances, these homeowners are low-income , elderly , immigrants, or disabled people , according to officials.
For members of these communities, their home is often their only asset and home equity is their lifetime savings.
The loss of even a single dollar is irreplaceable, putting them at increased risk of poverty and homelessness.
“The Consumer Federation of California thanks Assemblymember Schiavo for authoring this important bill,” said CFC Executive Director Robert Herrell. “Foreclosure is a nightmare even in the best of circumstances, but California’s current foreclosure system excessively punishes the most vulnerable Californians. AB 2424 would provide a clear pathway to allow these foreclosed Californians meaningful access to the sometimes substantial equity gains coming from their foreclosed properties and a critical lifeline to benefit from their most meaningful asset in life.”
Ed. Note: The above information was provided to KHTS by Assemblywoman Schiavo’s (AD-40) Office).
Do you have a news tip? Call us at (661) 298-1220, or send an email to news@hometownstation.com. Don’t miss a thing. Get breaking KHTS Santa Clarita News Alerts delivered right to your inbox. Report a typo or error, email Corrections@hometownstation.com KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook , Twitter , and Instagram .
Comments / 0