California Foreclosures Process

 

California is the first state to impose the same rules for all mortgage servicer’s in how they manage and handle foreclosures.  On July 11th Governor Jerry Brown signed into law  the “Homeowner Bill of Rights” to help struggling Californians keep their homes.

The purpose of the law is to help individuals avoid foreclosure, specifically when they are involved in a loan modification or short sale transaction. In the past one department was not aware of what the other department was doing and even though someone was working towards a loan modification, the foreclosure process was not put on hold. This resulted in people losing their homes while trying to get help. The same thing happened when someone was involved in a short sale that was in escrow.

The California Homeowner Bill of Rights has four major components:

  • Prohibiting “dual track” foreclosures that occur when a servicer continues foreclosure while also reviewing a homeowner’s application for a loan modification;
  • Creating a single point of contact for homeowners who are negotiating a loan modification;
  • Expanding notice requirements that must be provided to a borrower before taking action on a loan modification application or pursuing foreclosure; and
  • Allowing injunctions against foreclosure until violations are corrected and permitting civil penalties against servicers that file multiple, inaccurate mortgage documents or commit reckless or willful violations of law.

The law is effective January 2013. To read the full test of the bill visit CCAR Realegal

Source of the above information: C.A.R. Newsline.

 

About Linda Urbick Linda

has written 252 articles on this blog.


Filed under: Short Sales & Foreclosures

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