California Homeowner Bill of Rights
What is A Mortgage Loan Modification?
The United States’ "foreclosure crisis" of 2010 forced many Californians out of their houses. Indeed, by 2012, lenders had seized nearly one million homes in the Golden State.
The California Homeowner Bill of Rights was enacted as a response to this crisis, in an attempt to stem the growing tide of Californians losing their houses. If you are being threatened with foreclosure, you should know you have expanded rights under this recent legislation.
To get the best foreclosure protection possible under the California Homeowner Bill of Rights, it’s important that you seek the counsel of an experienced attorney. For over 20 years, the legal team at the San Fernando Valley’s Nader & Berneman has been helping Southern Californians stay in the homes they’ve worked so hard for. For a free consultation, call our Encino office at (800) 568-0707.
Following are the key provisions of California Homeowner Bill of Rights that became law in 2013.
- Dual track foreclosure restrictions: Mortgage companies are no longer allowed to simultaneously seek a foreclosure on your home while negotiating a loan modification with you. The foreclosure process must be put on hold until the loan modification application has been completed and reviewed.
- Single point of contact guarantee: In the past, homeowners enduring the foreclosure process were often shuffled around from agent to agent, resulting in miscommunication and frustration on their part. Homeowners are now guaranteed a single person, or team of people, who is/are familiar with their case.
- Verification of documents: In the past, many lenders or servicers would file foreclosure documents without actually reading them and verifying their content, a practice referred to as "robo-signing." Under the California Homeowner Bill of Rights, all documentation regarding your case must be independently verified, valid, and legitimate. Lenders can be fined as much as $7,500 per loan for filing an unverified document pertaining to your loan.
- Enforceability clause: If a lender violates any part of the California Homeowner Bill of Rights, the tenant can sue them for damages in civil court.
- Tenant rights: If someone buys your foreclosed home, the buyer must give you at least 90 days to vacate before they begin eviction proceedings.
- Tools for the prosecution of mortgage fraud: Mortgage fraud schemes can be very complex and require lengthy investigation. This results in many fraudulent lenders getting away with their crimes because the statute of limitations was only one year. The California Homeowner Bill of Rights raises the statute of limitations for these crimes to three years.
- Tools for curbing blight: In neighborhoods with multiple vacant and foreclosed houses, owners can have more time to fix code violations and are encouraged to pay for the continued upkeep of their buildings.
As you can see, the California Homeowner Bill of Rights has made the outlook for struggling homeowners much brighter. At Nader & Berneman, we’re committed to keeping you and your family in your home. And with these new safeguards signed into law, we’re confident that we can do just that. For more information about foreclosure prevention, loan modifications, and related topics, call (800) 568-0707 for a free case evaluation.
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- California Homeowner Bill of Rights - State of California - Department of Justice