California Homeowner Bill of Rights Becomes Law

There is hope for struggling California homeowners to help avoid foreclosure under new legislation signed on Wednesday by Governor Jerry Brown.


The new Homeowner Bill of Rights will protect homeowners and borrowers during the mortgage and foreclosure process.  The bill prohibits some unfair bank practices that have forced thousands of Californians into foreclosure. The law restricts dual-track foreclosures, where a lender forecloses on a borrower who is working on a loan modification in an attempt to save the home. 

It also will guarantee homeowners a single point of contact at their lender with knowledge of their loan, and direct access to decision makers. It will impose civil penalties on fraudulently signed mortgage documents as well. 

According to Attorney General Kamala Harris,  this new bill will give homeowners who are struggling to keep their homes another chance. This legislation will make the mortgage and foreclosure process more fair and apparent, so loan servicers can’t detour from their promises. 

In all, this law will benefit struggling homeowners, their community, and the progress of the housing market recovery. This new law will go into effect January 1, 2013. 

Opponents of the legislation worry that slowing the foreclosure will hamper the housing market recovery and will only help a “tiny fraction” of homeowners who are behind on their payments. 

To learn more about the California Homeowner Bill of Rights and how the new bill can impact California homeowners, please visit www.oag.ca.gov      

Carol Wolfe, Associate Broker, CRS, www.CarolWolfe.com  Carol@CarolWolfe.com  DRE License #00477745


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