California Homeowner Bill of Rights
Helping California and San Diego Distressed Homeowners Keep Their Homes
Great news for some San Diego homeowners! Effective January 1, 2013
The California Homeowner Bill of Rights aims to avoid foreclosure where possible to help stabilize California’s and our San Diego house market and prevent the other negative effects of foreclosures on San Diego families, communities, and the San Diego economy. The new law will generally prohibit lenders from engaging in dual tracking.
For San Diego short sales, a mortgage service or lender cannot record a notice of default or a notice of sale or conduct a trustee’s sale at the San Diego courthouse steps, if a foreclosure prevention alternative has been approved in writing by all parties (e.g., first lien investor, junior lienholder, and mortgage insurer, as applicable), and proof of funds or financing has been provided to the servicer.
Other provisions of this law prohibit dual tacking for San Diego homeowner loan modifications, require a single point of contact for San Diego borrowers seeking foreclosure prevention alternatives, provide San Diego area borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.
This law generally pertains to owner-occupied California properties with one-to-four units,with certain exceptions. A more detailed discussion of the California Homeowner Bill of Rights is available at http://www.car.org/legal/miscellaneouscontacts/realegal-chart/2012-realegals/sept28revised/. Assembly Bill 278 and Senate Bill 900.