Prior to 2013, many homeowners faced uncharted waters when it came to foreclosure. While most of those problems still persist, to ensure fair lending and borrowing practices for homeowners, California passed the California Homeowners Bill of Rights, which guarantees fairness and transprency for homeowners in the foreclosure process. Below are a portion of the new rules:
Homeowners must be contacted prior to foreclosure. A mortgage servicer cannot record a Notice of Default until 30 days after the mortgage servicer contacts the homeowner to look at the homeowner’s financial situation. Mortgage servicers cannot continue the foreclosure process if the homeowner is working on getting a loan modification. Foreclosure proceedings are stopped until a decision is reached on the loan modification.
If a mortgage servicer files multiple unverified and inaccurate documents, they may face a $7500 fine. And, mortgage servicers are required to provide a single point of contact to homeowners who are at risk for default.
Homeowners may have the right to seek civil relief for any material violations of teh new foreclosure process protections. This includes injunctive relief.
If you or a loved one is under threat of foreclosure, call of the Law Offices of Michael H. Raichelson at 818-444-7770.