April 20, 2010
Senate Bill 1275 (Leno) would require all loan services to evaluate a borrowers eligibility for a loan modification before foreclosing. Prior to recording a notice of default borrowers would be mailed a notice informing them of their rights regarding foreclosure avoidance options, including applying for a loan modification or other alternative to foreclosure. Borrowers submitting a written request for a loan modification that is denied are entitled to receive a detailed explanation. This program is patterned after the national Home Affordable Modification Program (HAMP). The bill has already passed one committee.