California Governor Jerry Brown signed the California Homeowner Bill of Rights into law recently, in an effort to halt “abusive tactics” of loan servicers while struggling homeowners are engaging in good faith efforts to protect their homes and renegotiate their mortgages.
The California Homeowner Bill of Rights, originally proposed by Attorney General Kamala D. Harris has four major components:
- Prohibits “dual track” foreclosures, which occur when a loan servicer continues foreclosure proceedings while simultaneously reviewing the homeowner’s application for a loan modification.
- Creates a single point of contact for the homeowners — instead of talking with several people or several different departments — while they are negotiating a loan modification.
- Expands notice requirements required to be provided to the borrower before taking action on a loan modification or a foreclosure.
- Allows injunctions against foreclosures until violations are corrected and allows penalties against loan servicers that file several incorrect mortgage loan documents or which commit reckless or willful violations of law.
California is the first state to enact such protections as permitted in the National Mortgage Settlement with the nation’s five largest mortgage loan servicers.
If a lender violates the Homeowner Bill of Rights, borrowers may file a lawsuit and have the opportunity to receive treble damages up to $50,000.
The new law will go into effect January 1, 2013.
If you’re a homeowner facing foreclosure, contact the Law Offices of Brad Weil at frontdesk@bradweillaw.com or 310-515-7776 to set up your appointment today. Attorney Weil can help you navigate the complex legal process and work out a solution that best fits your needs.
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