The California Homeowner Bill of Rights is a little bit closer to becoming law as announced just last week by California’s State Attorney General.
What is the California Homeowner Bill of Rights?
AB 278 and SB 900 were drafted in order to provide protection for borrowers and struggling homeowners. Specifically, there is a restriction on the ability of lenders to dual-track. What this means is that if a borrower is working on a loan modification or a short sale, the lender cannot continue to actively foreclose on the property. Additionally, the bill also guarantees struggling homeowners a single point of contact at their lender. This point of contact is expected to have knowledge of the loan and direct access to decision makers.
The Homeowner Bill of Rights contains four other bills, including measures to enhance law enforcement responses to mortgage and foreclosure-related crime, to help communities fight neighborhood blight, and to provide protections for tenants in foreclosed homes.
The California Homeowner Bill of Rights will not be a law unless Governor Brown signs it. However, if the bill does become law, many short sale agents and prospective short sale sellers will be relieved of the anxiety and constant worry about whether the home will be on the auction block in the coming days, weeks, or months.
In addition to the California Homeowner Bill of Rights, there are other state and federal programs available that will benefit struggling borrowers. Here are articles about a few of these programs. Check ‘em out: