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.
Moreover, while 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.
In order to stem the wave of foreclosure, on July 11, 2012, California enacted into law a "Homeowner Bill of Rights" for the purpose of aiding embattled homeowners and bring fairness, accountability and transparency to the state's foreclosure process.
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 dual tracking ban set forth in the statute would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or recording a notice of sale or conducting a trustee's sale while a complete loan modification application is pending on a first lien mortgage or deed of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied.
In addition, mortgage servicers will be required to designate a "single point of contact" for borrowers who are potentially eligible for a loan modification. The new law requires 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.
Also newly established are procedures in connection with modification applications, their processing, denial and rights of appeal.
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.
In addition to injunctive relief, California's Homeowner Bill of Rights authorize 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. Prevailing borrowers may also receive attorneys' fees.
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.
California's Homeowners Bill of Rights legislation is effective January 1, 2013, and can be found in the recent amendments and additions to the California Civil Code Sections relating to mortgages. ( See: 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.
Moreover, while 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.
In order to stem the wave of foreclosure, on July 11, 2012, California enacted into law a "Homeowner Bill of Rights" for the purpose of aiding embattled homeowners and bring fairness, accountability and transparency to the state's foreclosure process.
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 dual tracking ban set forth in the statute would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or recording a notice of sale or conducting a trustee's sale while a complete loan modification application is pending on a first lien mortgage or deed of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied.
In addition, mortgage servicers will be required to designate a "single point of contact" for borrowers who are potentially eligible for a loan modification. The new law requires 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.
Also newly established are procedures in connection with modification applications, their processing, denial and rights of appeal.
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.
In addition to injunctive relief, California's Homeowner Bill of Rights authorize 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. Prevailing borrowers may also receive attorneys' fees.
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.
California's Homeowners Bill of Rights legislation is effective January 1, 2013, and can be found in the recent amendments and additions to the California Civil Code Sections relating to mortgages. ( See: 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 )
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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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