New Laws in California Seek to Avoid Foreclosure

New laws in California seek to avoid foreclosure

By Sandy Flores

 California Gov. Jerry Brown on Tuesday signed last week three new laws that are part of the Bill of Rights of Homeowners, designed to increase the penalty for offenses related to mortgages.

These laws protecting homeowners to give the state attorney general of California, Kamala D. Harris, the authority to conduct by a state grand jury investigations to discover financial crimes, including mortgage fraud, and extend from one to three years the period for a foreclosure, if it is determined that these crimes are real.

In July 2012, Governor Brown signed two of the most controversial parts of the new law for homeowners, by expanding the right of homeowners to sue their mortgage managers or servers, and stop foreclosure under certain conditions, or seek and obtain monetary compensation whether intentionally or negligently, lenders violated any state laws.

Thousands of California homeowners have lost their homes in foreclosures and the crisis, in my professional opinion, it is still far from over. These laws protecting homeowners to go in part to help many homeowners who have been and continue to be affected as a result of unfair practices in the process of foreclosure.

Note that these laws do not prohibit managers or bank server staging a foreclosure, what is now required is that the bank server will provide all documentation to the borrower, which clearly demonstrates that the bank has the right to foreclose before recording the notice of default, or in English Notice of Default, in the public records of the city and county where the property is located.

Also prohibits banking servers record the notice of default in the public records office, if the owner is an active process modification, short sale, deed in lieu of foreclosure or other alternative in which the owner is actively working with the banking server to avoid foreclosure.

Likewise, if your loan modification application has been denied, bank servers will have to disclose the exact reasons why this resolution that led to the denial of his modification. Are required foreclosure notices are communicated and served personally, including delays that could be made.

To protect the homeowner, also requires the bank server provide complete information of the person who will act as the contact point between the owner and the bank server.

Persons acting as point of contact will be responsible for providing all related efforts and complete the banking server is performing in the loss mitigation process for the owner to avoid foreclosure information.

If you have made many attempts to get a loan modification, and did not reach any reasonable agreement that suits you, or maybe the change is not the process that you want or is suitable for you. Remember … you have options.

There are government agencies and non-profit agencies offer free counseling to homeowners who are facing financial difficulties.

These agencies are certified under the HUD (Housing Urban Development).

Please visit the websites of the Department of Housing and Urban Development (HUD): www.hud.gov ; www.995hope.org  and www.juntosenlalucha.com

Unfortunately it is common opportunistic companies, known as “specialists Foreclosure Rescue”, “Specialized Companies in Loan Modifications,” among others, that promise to help homeowners who are facing foreclosure are providing support services to benefit from these new laws. Be alert and become an informed consumer.

Know what you sign and get all promises and agreements in writing.

Do not sign blank documents. Note that, in general, verbal promises and agreements relating to your home are not backed by law. Protect your rights to a document or contract signed by the person who is providing services, and keep copies.

As always, it is advisable to get professional advice from a specialist if you need more information and help you to explain all your options, and the implications of these processes.

Note that it is important to verify that the professional advise him and have current license issued by the Department of Real Estate in the State of California, to be better able to help you decide which options would best suit you in particular.

To check licenses, visit the website: www.dre.ca.gov/ 

An informed decision is the best guarantee.

Stay Educated!

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