Fighting Back – Mortgage Companies vs. Homeowners:
There is a new California Homeowner Bill of Rights Law that was passed in January 2013 by California Attorney General Kamala Harris:
1. Restriction on Dual Track Foreclosures:
Homeowners that are in the process of loan modifications will have the foreclosure process paused, while the banks are reviewing the loans for the modification.
2. Guaranteed Single Point of Contact
Homeowners are promised a single point of contact during the foreclosure / modifying process. I can say that this has not been our case. Each time we seem to be getting somewhere positive, they change the point of contact on us.
3. Verification of Documents
There is a $7,500 penalty assessed to the mortgage banks if loan documents are not verified. This too has not been our case. Our original loan document had no income verification and unknown assets on the balance sheet. Maybe this only applies to the new loan modifications, but I think they should go back and verify the existing loan documents as well, since this is where the problem originated.
4. Enforceablity
Borrowers will have ability to seek redress of material violations of the new foreclosure process protections. injunctive relief is available prior to foreclosure. This also includes recovery of damages available following the sale.
5. Tools to Prosecute Mortgage Fraud
This has been extended to 1-3 years. Mortgage fraud will be reported to Attorney General
6. Tenant Rights
This gives tenants 90 days before the eviction process, once foreclosure owners purchases the property. 18 billion dollars have been authorized to the top five largest banks for California borrowers.
7. Tools to Curb Blight
Foreclosure owners are ordered to pay for upkeep to foreclosed property to keep the curb appeal for other, nearby homeowners.
More information, go to the website at the State of California Department of Justice Office of the Attorney General:
https://www.oag.ca.gov/hbor
Written By: Ask Ms Mandi
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