Fantastic, fantastic idea which I believe will help curve the Banks eagerness to foreclose instead of modifying loans also bring needed revenue to the State.
In a "Nutshell," an assemblyman in California wants to implement a bill which invoices Banks who foreclose on Real Estate.
This is a great for so many reasons. First, it may increase loan modifications and, speed the Short sale process. Which are better alternatives than foreclosure.
For more information on Short sales see my past blog dated 5/21/2001.
Proposed CA law would bill banks for foreclosures
On Wednesday March 16, 2011, 3:49 pm
LOS ANGELES (AP) -- A California state assemblyman is introducing legislation that would bill banks $20,000 for every home foreclosure they execute in the state.
San Fernando Valley-based Assemblyman Bob Blumenfield's office said in a fact sheet released Wednesday that the bill would help make up for costs associated with foreclosures, such as property tax losses.
The money collected would be used for school districts, police and fire departments, small-business loans and other applications.
Amy Schur, who directs advocacy group Alliance of Californians for Community Empowerment, which is supporting the bill, says its language is currently being vetted by the legislature's legal staff.
Blumenfield spokesman Anthony Matthews did not return a phone call. A message was left with Mortgage Bankers Association spokesman John Mechem
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