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California State Senate bill passes to help homeowners avoid foreclosure

By
Real Estate Agent with Allison James Estates and Homes BRE# 01875177

California State Senators Mark Leno and Tem Darrell Steinberg authored SB 1275 which will help prevent loan servicers from foreclosing on homeowners who have requested loan modifications until a decision has been made about the mod and the homeowner has been notified.

As many of us have heard the horror stories, loan servicers have been initiating foreclosures on homeowners even when they have been actively trying to get a loan modification or even when they are in the middle of making payments on a trial loan modification.

This bill also helps the homeowner to seek limited damages against the servicer if they foreclose due to servicer error, which happens very often.

In short... ALWAYS seek the advice and help of a Real Estate Attorney!

Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This is important legislation.  I only find it unfortunate that it will give limited damages.  Why not make it something the bank would pay attention to like voiding the debt and returning the property debt free to the previous owner?  Yes, I know it's a little ridiculous, but it's also ridiculous when the banks can simply foreclose after telling an owner that they're in the midst of a loan mod, and then not communicate the change if it's denied after months or years.

Jun 10, 2010 06:16 PM