Homeowner’s Bill of Rights
Posted On: June 10th 2013
The California legislature enacted meaningful legislation requiring servicers comply with basic rules while processing loan modification applications and foreclosing. The real test as to whether this new legislation will actually provide meaningful relief for homeowners rests with how judges will apply and interpret the new statutory provisions. Of significance, the new laws attempt to prevent robo-signing, dual-tracking, and confusion during the loan modification process. The legislation also requires that servicers provide a homeowner with documents related to servicing and accounting, a copy of the note, and other mortgage-related documents. Additionally, servicers will have to provide homeowners with a single-point of contact and an explanation when homeowners are denied a loan modification.
If a servicer violates one of the statutory provision, the Act allows the homeowner to seek an injunction to stop a foreclosure sale and to request attorney’s fees.
The following article provides a detailed summary of the new Homeowners’ Bill of Rights: