California passes law to end home equity theft through property tax reform

California is the latest state to end the practice of home equity theft at the institutional level with the enactment of AB 418, which Gov. Gavin Newsom signed into law on Oct. 1. The bill forbids local governments from keeping or transferring homes without providing compensation to the former owner and ensures that any foreclosure generates a sale, with any surplus funds from a sale returning to the homeowner.