Vote Smart's Synopsis:

Vote to pass a bill that requires lenders to maintain their vacant properties, give advance notification to borrowers when mortgage payments increase and modifies foreclosure vacancy rules.

Highlights:

- Requires that borrowers be informed by mail 120, 90 and 45 days before any payment increase of at least 10 percent until January 1, 2013 [sec. 2 (a) (d)]. - Mandates that prior to filing a notice of default the lender must send a correspondence and call the property to arrange an in-person or telephone conversation with the borrower to assess their current financial situation [sec. 3 (a) (e) (h)]. - Instructs the lender to provide evidence that he or she has met with or tried to meet with the borrower [sec. 3 (b)]. - Requires the lender to provide a 24-hour toll-free telephone number that allows the borrower to speak with a representative [sec. 3 (h) (6)]. - Requires that defaulting residents be informed by mail that their property will be sold at foreclosure and they should receive a new lease or a 60-day eviction notice from the new property owner (Sec. 4). - Charges owners who fail to maintain their vacant residential property purchased at foreclosure with creating a nuisance and subjects them to civil fines of up to $1000 per day. Charges owners who fail to maintain their vacant residential property purchased at foreclosure with creating a nuisance and subjects them to civil fines of up to $1000 per day. A "failure to maintain" includes, but is not limited to, allowing excessive foliage growth, allowing trespassers and squatters, or the presence of standing water and mosquitoes [sec. 5 (a-b)]. -Permits tenants to continue to reside on rental property sold due to foreclosure for 60 days following a written notice [sec. 6 (a)]. -Mandates that the provisions of this bill will expire after January 1, 2013 [sec. 6 (b)].

Full Bill Text