On July 2, the California State Senate passed a mortgage foreclosure-related bill, SB 1137 (which was passed by the California State Assembly on June 30).The legislation would require lenders to attempt to contact a borrower prior to beginning foreclosure proceedings in order to discuss workout or loan modification options. Lenders would not be allowed to file a notice of default until after 30 days from the later of the date of contact with the borrower and the exhaustion of required diligence procedures. The legislation would also (i) require owners of foreclosed property to maintain the property or face daily fines of up to $1,000, (ii) provide tenants with a 60-day notice period prior to eviction from a rental property that has been subject to foreclosure and (iii) provide a safe harbor regarding contract interpretation to servicers making loan modifications in accordance with the provisions of the statute.

http://info.sen.ca.gov/pub/07-08/bill/sen/sb_1101-1150/sb_1137_bill_20080707_enrolled.html