California Homeowners Bill of Rights
Once the clock struck midnight on January 1st, 2013, many laws took effect in California to protect homeowners in Orange County and across California. One of the most important new laws is the California Homeowner Bill of Rights; this important piece of legislation is meant to ensure that homeowners in California are protected from unscrupulous lenders and bad practices in the mortgage industry.
More Protection during Foreclosures
Thanks to California’s Homeowner Bill of Rights, any distressed homeowner in California will enjoy more protection during the foreclosure process since new regulations were put into place that include the following:
- Foreclosure speed – It’s now illegal for mortgage servicers or lenders to push a foreclosure forward if the homeowner is trying to go through a loan modification. While the homeowner is waiting for their loan modification to be approved or denied, the mortgage servicer cannot proceed with the foreclosure until the homeowner’s loan modification application has been completely reviewed and denied.
- Contact – During past foreclosures, Orange County homeowners and property owners across California have been frustrated with having to speak with multiple representatives in the same bank. Thanks to the Homeowners Bill of Rights, a homeowner who is going through loan modification will now have one point of contact that is familiar with their situation and can help their case to get a quick decision.
- Document verification – Any mortgage lender who doesn’t verify the homeowners documents during the foreclosure or loan modification process will be subject to a fine of $7,500 or more per loan.
Progress for Distressed Homeowners In 2013
With California’s Homeowner Bill of Rights any distressed or underwater homeowner can expect more protection under the law and more help with getting out from their underwater homes in 2013.
If you’re living in an underwater home and are considering short sale or foreclosure, contact our experienced team of Orange County Realtors at Fred Sed & Associates today by calling (949) 272-0125.