HB 1506, and on the Senate side, Chap Petersen and Don McEachin are carrying the companion bill, SB 836.
These bills require Banks and Mortgage Lenders to give 30 days notice of intent to foreclose and sell. Currently, they only have to give you 14 days notice. As we all know, the Great Recession has forced hundreds of thousands of people to go into bankruptcy and lose their homes. In several cases the rush to get these bad mortgages off their books snagged people who were financially sound and had never missed a mortgage payment, or been even late on a payment, leading to the foreclosure and sale of their homes.
So, how could this happen you ask? Not doing their jobs, that's how. Also, sloppy record keeping. By doing a simple titles search and comparing that to the home owner's payment history would have avoided anything like this happening. For years, the Mortgage Industry has been relying on a system called MERS (Mortgage Electronic Registration System), where they entered the information into the system and basically forgot about it until a homeowner was far enough behind on their payments that it would notify the lender. The problem with that is people enter the data and sometimes that information isn't accurate.
When bipartisanship like this occurs in the Virginia General Assembly, it should be celebrated. As for the Banks, they get bailed out, again.
Images found at: http://homesfortmill.com/wp-content/uploads/2009/04/foreclosure-home-sale-sign.jpg and http://www.sarasotahomesforsalenow.com/wp-content/uploads/2009/12/BofA-forces-foreclosure.jpg
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