Calif.: Governor Vetoes Foreclosure Bill

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(October 1, 2004) -- California Gov. Arnold Schwarzenegger has vetoed a bill that would have barred homeowner associations from using non-judicial foreclosure as a debt-collection policy.

Although the measure had attracted bipartisan support, Schwarzenegger criticized the legislation as "overly broad," adding that it could result in higher assessments for homeowners who do make timely payments.

Some 37,000 private communities in California and thousands of others across the country are using non-judicial foreclosure to collect overdue homeowner assessments. The bill was prompted by an incident in which a Calaveras County couple had their $285,000 home auctioned off to recover a $120 debt.

Source: San Jose Mercury News (10/01/04)

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