New Foreclosure Regulations – 1/1/2013

It is called the California Foreclosure Reduction Act that is part of the Homeowners Bill of Rights.  There are 4 main points.

  1. No more dual tracking – lenders can’t be considering a loan modification and continue with a Foreclosure.
  1. Borrower must be given a single point of contact – no being shuffled around hither and yon.
  1. No robo-signing – lender’s staff must ensure that reliable evidence has been verified before they can proceed on “foreclosure procedures.”
  1. Private right of action for “material violations.”  This means that a homeowner can take a lender to court for disregarding the new law.  A borrower can seek $50,000 or triple actual damages and reasonable attorney fees for a violation.  This makes it easier on an individual homeowner since they won’t have to deal with class action cases.

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