SENATE HOUSING COMMITTEE CHAIR PROMISES LEGISLATION

February 17, 2004

By Peter Amherst
Copyright AHRC News Services

The California Senate Housing Committee Room in Sacramento was packed to capacity with members of the public, reporters and TV cameras. The hearing focused on the question whether homeowner associations should be stripped of their power of non-judicial foreclosure.

Driving the public's interest was Tom Radcliff, the disabled man from near Sacramento who lost his home in foreclosure for $120. in unpaid homeowner association assessments. His house was worth $280,000.

Speaker after speaker called for the elimination of non-judicial foreclosure for unpaid assessments. One speaker called it the MOAB of all collection bombs. In addition many homeowners sent in reports supported with documentation about illegal foreclosures and foreclosure practices in homeowner associations. Several speakers called for the use of small claims actions prior to any collection activity being taken for upaid dues.

Only one speaker, the lobbyist for CAI argued in favor of non-judicial foreclosure.

Senator Ducheny, the committee chair told reporters that she expected a bill to be introduced in the next few days.

A shudder went through the audiance when Senator Ducheny announced that one of the two foreclosure witnesses, Melissa Colburn, would not be testifying because the lawyers who foreclosed on her home, Peters & Freedman, threatened her with a lawsuit if she testified. She did not testify. The committee is reportedly in the process of issuing her a subpoena which would protect her from suit.

This move by Peters & Freedman highlights the high stakes drama being played out over this issue. Not only is there alot of money involved in this lucrative field but many questions have been raised at some of the foreclosure practices used.

Californians are hoping that the legislature will finally end non-judicial foreclosure in homeowner associations. It has caused too much suffering.