State legislative package aims to slow foreclosure rate

April 06, 2010 04:30PM

A package of state foreclosure legislation that will enforce broad protections for troubled homeowners is set to take effect April 15. The new laws aim to crack down on loan modification scams, extend the number of days banks are required to give notice before foreclosing on a home and demand that banks provide upkeep on foreclosed homes to avoid degradation of property values. The bills, which were signed into law last December, are also designed to help homeowners who did not take out subprime mortgages but, nonetheless, face foreclosure. “A lot of innocent bystanders were impacted by [the] subprime crisis,” State Senator Jeff Klein said. “These are people who played by the rules and paid their mortgages on time.”


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