The California Homeowner Bill of Rights and What It Means for You

October 03, 2012

Between 2008 and 2011, more than one million California homes were lost to foreclosure. At the midway point of 2012, approximately 700,000 homes in the state were embroiled at some stage of the foreclosure process.

There is no doubt that California was hit especially hard by the foreclosure crisis. Many Californians are still struggling to prevent foreclosure. But, homeowners will soon receive a helping hand through a group of bills recently signed into law that are collectively known as the California Homeowner Bill of Rights.

Bill of Rights Creates Breathing Room for Struggling Homeowners

California's Homeowner Bill of Rights is the first legislation of its kind in the nation at the state level. The thrust of the Homeowner Bill of Rights is creating safeguards that prevent abusive home lending practices. For those with existing mortgages, the Homeowner Bill of Rights makes it more difficult for lenders to seize a home, and helps make it easier for homeowners to stop the foreclosure process with a lawsuit.

Specifically, bills included as components of the California Homeowner Bill of Rights:

- Authorize the Attorney General's office to use a statewide grand jury to investigate and indict perpetrators of financial crimes that involve victims in multiple counties

- Extend the statute of limitations for prosecuting mortgage-related crimes from one year to three years, which gives the Department of Justice and District Attorneys more time to investigate complex mortgage fraud schemes

- Require buyers of foreclosed homes to give tenants a minimum of 90 days before initiating eviction proceedings

- Designate resources to help local governments and receivers combat blight caused by multiple vacant homes in neighborhoods

- Restrict dual-track foreclosures, in which a lender attempts to foreclose on a homeowner in the midst of discussions over a loan modification that could save the home

- Require lenders to provide struggling homeowners with a single point of contact with both knowledge of their loan and direct access to decision makers

- Establish other protections for borrowers and struggling homeowners

Talk To a Southern California Bankruptcy Attorney to Take Advantage of Homeowners Bill of Rights

The California Homeowner Bill of Rights does not go into effect until Jan. 1, 2013. However, most lenders are already complying with the bill now. Ultimately, the Homeowner Bill of Rights should help homeowners get a fairer shake from their lenders. It is not a panacea, but is certainly a step in the right direction.

If you are struggling to make mortgage payments or are already facing foreclosure, the new law may help improve your situation. But, you still need to take the initiative and get in touch with a Southern California debt relief attorney in order to explore the range of legal options at your disposal.

Article provided by Sobti Law Group
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