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Foreclosure: ‘Homeowner Bill of Rights’ is being proposed-will it pass?

By
Real Estate Broker/Owner with HHMC Hollywood Homes by MC

Foreclosure Breaking News:  ‘Homeowner Bill of Rights’ is being proposed-will it pass?

According to recent news reports, a proposed new CA Foreclosure Law is aimed at fixing some of the most serious challenges in the system; in addition to giving more protection to homeowners facing foreclosure.  This proposed bill will provide basic fairness and transparency for homeowners, and improve the mortgage process for everyone.

 

In short, if approved, the bills would stop banks from simultaneously pursuing foreclosures against troubled borrowers who are in talks with them about loan modifications. Borrowers would also have to be given a single point of contact instead of being passed from one department to another.

 

Specifically: The new legislation before the California State Senate and Assembly would include:

 

  • End so called dual tract foreclosures that allow mortgage holders to allow mortgage holders to simultaneously negotiate loan modification to lower homeowner’s interest payments while taking legal steps to foreclose on the same properties.
  • Provide a single point of contact for homeowners with their loan servicers and impose a $10,000 civil penalty for robot signed mortgage documents containing unverified information.
  • Give local governments tools to force banks and property owners to maintain blighted, foreclosed homes and to give new owners incentives to improve their properties.
  • Allow renters more time to stay in foreclosed residences.
  • Collect fees from banks to pay for enhanced law enforcement actions to defend homeowners.
  • Create a statewide grand jury to investigate alleged financial and real estate foreclosure crimes.

 

If approved, this bill could lead to the slowing or halting of foreclosures (Refund California Coalition. 

 

For the record, we must know: In the past, similar foreclosure prevention bills have been defeated or watered down in recent years after steep opposition from lobbyist financial services industry and other groups.

 

I say, “Let the fight begin!”  It is time for someone to speak up for California homeowners who have been and are still experiencing devastation by the mortgage and foreclosure crisis; in addition to deceptive practices. What say you?

 

Source: LA Times, March 1, 2012

The key players involved: Atty.Gen. Kamala Harris; John A. Perez, Assembly Speaker; Darrell Steinberg, Senate President Pro Tem

 

Hollywood Homes by MC

MC Griffin Campbell, Broker/Owner:  License #: 01819507

Short Sales and Foreclosure Resource (SFR) Certification

Seniors Real Estate Specialist Designation (SRES); MFT, M.Div.

323-382-4364: 323-464-5431

Fax #: 323-927-1711                       

www.hollywoodhomesbymcampbell.com

email: hollywoodhomesmc@aol.com

Comments (1)

Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Thanks for sharing this important piece of legislation. I think it has some excellent points. 

Mar 06, 2012 07:45 AM