It is called the California Foreclosure Reduction Act that is part of the Homeowners Bill of Rights. There are 4 main points.
- No more dual tracking – lenders can’t be considering a loan modification and continue with a Foreclosure.
- Borrower must be given a single point of contact – no being shuffled around hither and yon.
- No robo-signing – lender’s staff must ensure that reliable evidence has been verified before they can proceed on “foreclosure procedures.”
- 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.
