Calif. Assembly Clears Bill To Aid Borrowers Post-Foreclosure

Law360, San Diego (June 25, 2013, 10:52 PM EDT) -- The California Assembly on Monday waved through a measure that would boost protections for borrowers after losing their homes in the foreclosure process by barring collections on the original debt and negative credit reports in certain circumstances.

The state Assembly floor voted 74-1 in favor of S.B. 426, which is carried by state Senate Majority Leader Ellen Corbett, D-East Bay. The bill would block deficiency collections and adverse credit reporting on nonrecourse loans after a nonjudicial foreclosure.

The measure, which passed out of the state Senate...
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