In the last three years the state of California, as well as the rest of our nation, has suffered from a prolonged real estate slump. In that time, more than one million were lost, in California alone to foreclosure.
All told, in the last three years with California suffering from a prolonged real estate slump, more than one million California homes were lost to foreclosure. Not just in foreclosure pipeline, but lost.
While it is no doubt true that parts of the California real estate market are recovering, statewide there are an additional 700,000 properties currently in various stages of the foreclosure process.
As a result of such horrific statistics, on July 11, 2012, in order to stem the wave of foreclosure, California enacted into law a "Homeowner Bill of Rights" for the purpose of aiding embattled homeowners.
Key provisions of California's recent legislation include a ban on the practice of "dual tracking." For those unfamiliar with this term, "dual tracking" is the practice whereby the lender gives the illusion of working with the borrower to secure a modification, while at the same time foreclosing. Such a practice provides the homeowner with a false sense of security, when in reality the bank wants to do nothing more than foreclose.
The ban on dual tracking prohibits the recording of a notice of default, notice of trustee's sale and the conducting of sale while a loan modification application is pending.
Another protection provided by the new legislation is the requirement that mortgage servicers designate a "single point of contact" for borrowers who are potentially eligible for a loan modification. The single point of contact be responsible to coordinate the flow of documentation between borrower and mortgage servicer and be knowledgeable about the borrower's status and foreclosure prevention alternatives.
There are also provisions which establish procedures to be followed in connection with the modification application. In addition, there are definite steps that must be taken by the servicer, should the servicer deny a modification application. Finally, the new law sets out very specific procedure to be followed in the event a borrower wishes to appeal the denial of a modification.
Should an embattled homeowner not secure a modification due to violations of the act, enforcement provisions include the right to seek an injunction and damages. Under the new law a homeowner will be able to secure injunctive relief without having to cure arrears or post expensive bonds.
As to the damage component, the Homeowner Bill of Rights authorizes the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions of the law is found to be intentional, reckless or resulting from willful misconduct. Borrowers may also receive attorneys' fees in connection with litigation under the act.
There are also changes to the notice provisions of a Trustee's Sale. These changes include the requirement that written notice be given to the borrower after the postponement of a Trustee's Sale.
More information about California's Homeowners Bill of Rights legislation can be found in: Civil Code 2920.5, 2923.4, 2923.5, 2924, 2923.6, 2923.7, 2923.55, 2924.9, 2924.10, 2924.11, 2924.12, 2924.15, 2924.17, 2924.18, 2924.19 and 2924.20
All told, in the last three years with California suffering from a prolonged real estate slump, more than one million California homes were lost to foreclosure. Not just in foreclosure pipeline, but lost.
While it is no doubt true that parts of the California real estate market are recovering, statewide there are an additional 700,000 properties currently in various stages of the foreclosure process.
As a result of such horrific statistics, on July 11, 2012, in order to stem the wave of foreclosure, California enacted into law a "Homeowner Bill of Rights" for the purpose of aiding embattled homeowners.
Key provisions of California's recent legislation include a ban on the practice of "dual tracking." For those unfamiliar with this term, "dual tracking" is the practice whereby the lender gives the illusion of working with the borrower to secure a modification, while at the same time foreclosing. Such a practice provides the homeowner with a false sense of security, when in reality the bank wants to do nothing more than foreclose.
The ban on dual tracking prohibits the recording of a notice of default, notice of trustee's sale and the conducting of sale while a loan modification application is pending.
Another protection provided by the new legislation is the requirement that mortgage servicers designate a "single point of contact" for borrowers who are potentially eligible for a loan modification. The single point of contact be responsible to coordinate the flow of documentation between borrower and mortgage servicer and be knowledgeable about the borrower's status and foreclosure prevention alternatives.
There are also provisions which establish procedures to be followed in connection with the modification application. In addition, there are definite steps that must be taken by the servicer, should the servicer deny a modification application. Finally, the new law sets out very specific procedure to be followed in the event a borrower wishes to appeal the denial of a modification.
Should an embattled homeowner not secure a modification due to violations of the act, enforcement provisions include the right to seek an injunction and damages. Under the new law a homeowner will be able to secure injunctive relief without having to cure arrears or post expensive bonds.
As to the damage component, the Homeowner Bill of Rights authorizes the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions of the law is found to be intentional, reckless or resulting from willful misconduct. Borrowers may also receive attorneys' fees in connection with litigation under the act.
There are also changes to the notice provisions of a Trustee's Sale. These changes include the requirement that written notice be given to the borrower after the postponement of a Trustee's Sale.
More information about California's Homeowners Bill of Rights legislation can be found in: Civil Code 2920.5, 2923.4, 2923.5, 2924, 2923.6, 2923.7, 2923.55, 2924.9, 2924.10, 2924.11, 2924.12, 2924.15, 2924.17, 2924.18, 2924.19 and 2924.20
About the Author:
Looking to find the best real estate and foreclosure assistance, then visit www.losangelesrealestateattorney.com for advice on real estate, foreclosures, modifications and short sales. .
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