“Widow Foreclosures” Could Be a Thing of the Past
SB 1150 by Senators Leno and Galgiani provides critical protections for widowers who weren’t listed on the home’s mortgage
SACRAMENTO—State Senator Cathleen Galgiani (D-Stockton) announced today that a bill she and fellow Senator Mark Leno introduced to protect widowers and other inheritors of a family home from being foreclosed on is heading to the Governor.
“Current law passed in 2012 created the Homeowners' Bill of Rights (HBOR), which establishes protections for homeowners and sets up rules and procedures for mortgage services and borrowers regarding options for borrowers to avoid foreclosure” stated Galgiani, “However, the law is silent on what happens for surviving spouses and others if the sole borrower passes away.”
To address this problem and prevent unnecessary foreclosures, SB 1150 clarifies the responsibilities of a lender when a borrower dies leaving a surviving homeowner who wishes to assume the loan.
“Unnecessary foreclosures hurt families who may be trying to rebuild their financial future after a devastating loss. As a community, we should not continue to allow lenders to add undue burden on a grieving family” stated Galgiani.
The bill addresses situations where only one spouse is listed on a mortgage, passes and leaves the home to a spouse. The surviving spouse who wants to keep the home that he or she may have lived in for decades is barred from simply assuming the current mortgage but rather is forced to apply for a wholly new mortgage at a new and potentially higher interest rate.
The bill passed out of both houses of the legislature and is headed to the Governor for his signature. Please send letters urging the Governor to sign SB 1150 into law or call or email Governor Brown:
Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814
Phone: (916) 445-2841
Fax: (916) 558-3160
Email the Governor Here: https://govnews.gov.ca.gov/gov39mail/mail.php