California Legislation to Quell "Double Tracking" by Banks

Rene' - I am hopeful the legislation will bring some relief, but I'm not holding my breath.  It seems nearly all moves at the federal, state and local levels have brought too little far too late.  Still perhaps, it will be another tool, to help.

William - When I read through these reports, the windfall for attorneys came to my mind also.  I do believe it would have been far better to have had a governing agency with teeth attached, help troubled homeowner seeking remedy with the banks.  However, with California's budget woes, Governor Jerry Brown has been fairly aggressive in trying to scale down the size of bloat at the state government level.  There may not be the manpower to oversee this type of activity.  Somehow, I don't think lenders will stop lending.  Afterall, they usually get their money one way or another.  Either through actual payment, through PMI-MIP insurance, or government bailouts!

Christine - I think it is very unfortunate that homeowners are required to take it to court to enforce.  History has been, that banks have paid pennies on the dollar for their shenanigans during this banking-housing crisis, and it doesn't appear it is going to change soon.  The penalities on banks with this legislation aren't especially high.  Therefore, how many attornies will actually want to take these cases? 

ALL - Just to put this in perspective, over the weekend, I heard of a case that will put a human face to all this.  I often think real estate professionals have dwelled at the front lines of the foreclosure and distressed housing arena so long now, that we become "accustomed" to the massive pain many have endured, similar to a trauma doctor in ER.  I personally know another couple in another state, who purchased their home at the height of the market in 2006.  They were in their late 50s. The home was to be their retirement home after many years of very hard work.  They put 40% down, with the hope of paying it off 5 years later with retirement fund money from 401Ks, etc.  The housing in their area has plummented 50%.  Gone is the equity in the home.  Mr. Homeowner lost his job 2 years ago, and has not been able to replace it other than with temporary small jobs will low wage and no benefits.  Their retirement accounts also took major hits because of what happened to Wall Street in 2008, but there has been some recovery.  The stress has taken a toll on this couple, and Mrs. Homeowners suffered a significant stroke 4 months ago.  Things are not easy out there.  It may be a little easy for real estate professionals to become jaded while viewing homes as simple inventory.  But, there is a significant human element here, and usually a pain filled story behind each of those homes!