California Foreclosure Law Passed

California has joined New York in passing legislation (full text of bill here) to address the foreclosure crisis. The thrust of the law is to require mortgage servicers to exhaust all avenues in order to contact borrowers and negotiate modified terms before foreclosing. It also provides limited protections for tenants affected by landlords' foreclosures and imposes duties on foreclosing servicers to maintain properties. Similar legislation has been proposed in a number of other states.