A Bill of Rights for Homeowners
Though the changes have already gone into effect (as of Jan.1), you might still be scratching your head over what that bill says and what it does for you. These new set of laws are designed to push banks to help consumers through the foreclosure, short sale, and loan modification process. Some of the finer points of the new bill package (as reported by Lily Leung of The San Diego Union Tribune) aim to:
– Stop dual tracking, the process of starting the foreclosure process while a loan modification has been submitted or being reviewed by the bank.
– Stop robo-signing, the process of approving foreclosure documents without proper review.
– Assign one point of contact to borrowers who are trying for a loan modification.
– Fight neighborhood blight, which happens when properties are not properly maintained after a foreclosure. It would allow cities to levy fines against homeowners who do not properly maintain their properties.
– Ensures renters of foreclosed properties are given at least 90 days before the eviction process is started.
-For violating any of these foreclosure laws, borrowers can now sue loan servicers.
The bill package was opposed by many financial institutions in California, but is generally applauded by homeowner advocates.
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