California To Implement New Homeowner & Lender Guidelines 2012..

New  pending legislation is in the works, in the State of California which would bar banks from foreclosing on homes while loan modifications are pending, let homeowner sue mortgage providers who break state law and require lender to provide a singe point of contact to borrowers. This is an extension of a national settlement that imposed new restrictions on the five largest U.S. Banks. Under the bill which a special legislative committee will consider next week, all California lender that process more than 175 foreclosures per year would have to adhere to the new regulations. This plan comes after weeks of negotiations.

These changes include giving lenders the chance to fix problems before consumer can file lawsuits, limiting costly nuisance lawsuits and exempting small lenders from some of the requirements. This legislation main focus is on two principles, fair treatment of borrowers and keeping California economy on track.

Lenders would be liable for triple damages if they engage in willful reckless or intentional violations.  Lenders would get a chance to fix problems with individual borrowers on their own before they can be penalized.

Require lenders to provide a singe point of contact for borrowers who want to discuss foreclosures or refinancing, with an exemption for smaller lenders.
Ban what are known as dual track foreclosures by barring lenders from filing notice of default, notices of sale, or conducting trustees' sales while they are also considering alternatives to foreclosure like loan modifications or short sales.

Increase penalties for banks that sign off on foreclosures without properly reviewing the documentation, a process know as rob-signing. But the $7,500 civil penalty would be limited to one for each loan --not for each improperly filed document, as lender had feared.

While some changes would be permanent, others such as the higher penalties for robo-signing would end after five years in deference to bankers' arguments that legislators were demanding permanent solutions to what lender say were temporary excesses.

Courtesy of: Crescent Moon Realty, Inc.
-----------------------------------------------------------

Being a real estate broker takes on the form of leadership. The agent/broker role is to lead the client through the home purchase or sales process and serving them with the highest customer service standards. Crescent Moon Realty, Inc & Land N Sea Auction goal is to help the client achieve as many of their goals as possible - so that both parties feel that they are in a win-win.

Find out the benefits to selling or buying a home traditionally or non traditionally ---Contact us @ 1-760-650-2157 Or visit our websites @ www.LandNSeaAuctions.com or CrescentMoonRealty.biz.

Lorraine or Loretta

 
This post has been included in California Real Estate News
Post is included in group: LA Connection
Post is included in group: Independent Brokerages
Post is included in group: Independent Brokers/Agents Network
Post is included in group: San Diego North County Real Estate
Post is included in group: BananaTude

0 Comments on California To Implement New Homeowner & Lender Guidelines 2012.
What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Loretta_and_i_pictures_001 Rainmaker_large

Lorraine or Loretta Kratz-Certified Negotiation Consultants

San Marcos, CA

More about me…

Crescent Moon Realty, Inc. & Land N Sea Auctions.

Office Phone: (760) 650-2157

Cell Phone: (760) 650-2157

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog