California proposal: No more foreclosures

SACRAMENTO, Aug. 17 (UPI) -- A proposal in California would make it illegal for banks to foreclose on homes, with home ownership considered a state right, a draft of the provision says.

The proposal requires more than 800,000 signatures and a 131-day grace period to be put on the next statewide ballot, which makes it possible voters would have a crack at the initiative in 2012, Business Law Daily reported Wednesday.

The proposal submitted to the state postulates, "It is a fundamental right for every Californian to purchase and own a home and real property. As such, no township, city, country, municipality, corporate entity … shall infringe on this given right."

The proposal says if a homeowner in good standing for three years is struggling, the bank would have 45 days to offer the homeowner refinancing.

State Attorney General Kamala Harris has approved the summary for petitions, but the California Department of Justice has informed California Secretary of State Debra Bowen a constitutional amendment would face legal challenges related to federal banking regulations.

The Justice Department also said it could cost the state "up to the low billions of dollars annually" in lost tax revenues.