By Clifford L. Williams,
Globe City Editor

Governor Arnold Schwarzenegger, state Senate President pro Tem Don Perata, Oakland Mayor Ron Dellums and Assemblyman Sandré Swanson joined a host of other elected officials and dignitaries Tuesday at a press conference at the Oakland Unity Council to jointly support the passage of SB 1137.

    The new law requires lenders to contact homeowners and explore restructuring options before initiating the foreclosure process. It also provides tenants with double the amount of time now afforded to them to move from a foreclose property.
   “Foreclosures not only devastate families, they hurt neighborhoods and depress our economy and our budget,” said Schwarzenegger. “I am proud to announce today that we are giving Californians one more tool to help them stay in their homes — without government subsidies. I am confident that with this legislation, we will help even more Californians keep the American Dream of homeownership alive.”
    Schwarzenegger signed the landmark bill and handed a copy of the legislation to East Oakland resident Dorothy Hicks, whose mortgage foreclosure problems set into motion the actions which led to today’s signing.
    “People were suffering from losing their homes, tenants were being unfairly evicted and neighborhoods were deteriorating from vacant houses,” said Hicks, an Oakland ACORN member.
    “Homeownership is fundamental to the American Dream,” said Swanson. “The signing of this bill is an important step in keeping that dream alive and to keep watch out for predatory lenders. This is part of what we do everyday. This new legislation will make banks and lenders more responsible in their lending practices.”
   “This is an important tool, particularly in Oakland,” said Dellums. “We will use it along with our CDBG (Community Development Block Grant) funds and working with the Unity Council and other nonprofits to help keep Oaklanders in their homes.”
    Last December, after attending a 300-person community forum organized by ACORN, Perata committed to addressing the deterioration of neighborhoods, loss of homes, sharp downturn of the economy stemming from predatory lending, and tenants’ rights violations.
    On June 30, the California Assembly passed, 55-18, the reform bill co-drafted by California ACORN, the Center of Responsible Lending, the California Reinvestment Coalition and the Consumer’s Union. The bill passed the state Senate April 28.
   In addition to protecting homeowners by requiring lenders to contact borrowers prior to the filing of a notice of default, and increasing the notice of eviction for renters from 30 to 60 days, the bill would impose up to a $1,000 a day fine on banks who do not take responsibility for properties left abandoned by a foreclosure.

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