Homeowner Bill of Rights is law
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Do you think the Homeowner Bill of Rights will help homeowners? Total Voters: 209
A portion of the Homeowner Bill of Rights, sponsored by the California Attorney General, has passed. The suite of bills making up the Homeowner Bill of Rights was proposed earlier this year as a preventative measure against foreclosure abuses by lenders against homeowners.
With the passage of these two state bills, Assembly Bill (AB) 278 and Senate Bill (SB) 900, California has become the most proactive state in protecting homeowners facing foreclosure.
The laws apply only to first-lien mortgages and prohibit a lender holding such a loan from:
- dual tracking—simultaneously negotiating a loan modification and pursuing foreclosure;
- robo-signing—improperly processing foreclosure documents; and
- assigning distressed homeowners more than one representative or point of contact each.
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loading...About The Author
Carrie B. Reyes
is lead writer in charge of the Real Estate Practice and Due Diligence and Disclosures books.
Latest CommentsLeave a Reply
Three Cities gone Bankrupt, with more to follow, Eminent Domain being tossed around as a solution to foreclosures, Strategic defaults are at a all time high and someone is worried about passing a Home owner bill of rights. Who voted these idiots into office anyway. Maybe all the yes voters on this topic? I give up****
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“Do you think the Homeowner Bill of Rights will help homeowners?” is too simplistic. Sure, it’s going to help existing homeowners get more months of free housing before and after their foreclosures.
On the other hand, if the purchasers of Mortgage Backed Securities (MBS’s) have an opportunity to buy a pool of MBS’s from California or a pool from a state without this onerous legislation, then they are going to demand a higher yield on the California MBS’s. That will raise rates for future California home purchasers.
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The legislation is not about those of us who are fortunate enough to keep making our payments. It’s about lender abuse. The legislation may cause you and I a “little” discomfort but might just help a lot of those less fortunate. The Banks, in my opinion, were the primary culprits in the “meltdown”. They will not lose! An attempt to make them do the right thing is a step in a good direction.
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This is a good first step, in some respects. I’ve seen the major the problems identified in the legislation, and the servicers have simply ridden roughshod over the borrowers–many of whom want nothing more than either a dignified exit from a property they can no longer afford, or an opportunity to get a little grace on their situations. As far as the potential for abuse by the homeowner, It’s certainly there, but the lender still holds all the cards, and will continue to do so.
The REAL sea-change has to come from Federal legislation that is tied to any future “favors” to the banks: mark the loans to market, immediately, and with no penalty. The properties are “marked to market” when they are foreclosed or short sold, so why not the loans?? This would immediately stop the bleeding in the real estate sector, because even in our wonderful state with its high unemployment, many people can still afford a reduced payment. it would also save an immense amount of investor money, since now the servicers bleed the investors dry with delays and excessive costs. Better to treat the real estate industry as bankrupt, and reduce the interest and amounts due on the notes to the amount the property would sell for if listed with a realtor.
Yes, it’s something of a gift to a sector of society we are fond of blaming, but the reality is that many folks didn’t engineer their problems, they were merely acting the way everyone else does in boom times–thinking they would not end so soon. When this happens in bonds, the bondholders take the haircut. Always.
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This may seem harsh, but if you purchase a car and cannot make the payments the bank takes it back. What’s the problem here? If you are not making your payments on your mortgage then the bank should have the right to foreclose and take it back. They are not the problem all by themselves. People spent more than they should too. Our market would get back to normal quicker if we quit babying the people who are losing their house. I have experienced good times and bad times in my lifetime and have had to pay the consequences. Please no more government interference. Let’s just let the market play out.
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more bills legislature passes to give the crooks a back door out
people are bieng tossed out of their homes..
10,ooo for robo signature that took their home and life savings.. ????
more bills leaning on expiditing the foreclosure… instead..
the american way…
sad really sad..
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Who is not for inprovement of the condition of the nation is not in favor of cleaning up this mess. This is a step in the right direction and bold enough for calif lawmakers to move ahead with this. I will be tested in the coming months for sure. It will protect the homeowners that are still in their homes such as myself so hooray. selfish perhaps but non the less it has teeth, and i do agree it is change and uncertaiinity but this had to be. The federal government is not doing anything, so i applaud our lawmakers fighting so hard to accomplish this law and signing. I certainly will use to the full extent of its capacity. Robert Let the banks go fish and leave the little guy be to pickup the pieces and live on.
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The banks have rights too. If you do not pay the mortgage get out of the house it is that simple. Let someone move in who will accept responsibility and pay on time.
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