More legislation is on the way for struggling homeowners. California SB729, scheduled for a vote May 4, 2011, would require loan servicers to give loan modification applicants a yes or no answer before starting the formal foreclosure process.
SB729 would end the “dual track” problem—where homeowners lose their homes to foreclosure while they are negotiating a loan modification with their lender. It also allows homeowners to bring legal action against servicers when serious violations occur.
Is legislation the answer to prolonging the housing downturn?