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.
State agencies and private citizens have the right to sue banks for up to $50,000 if lenders violate these laws, effective January 1, 2013 until January 1, 2018.
Opponents in the lending and real estate industries claim the new laws will make transactions over-complicated, create ambiguous lawsuits and thus slow the recovery. Lenders also claim the laws will increase real estate transaction costs.
Stay tuned for an upcoming Legislative Watch detailing the provisions in these new laws!
first tuesday take
These protections are a good thing. The Homeowner Bill of Rights consists of several other pending bills, including:
- AB 1602/SB 1470, requiring lenders to give more disclosures than are currently required when conducting a foreclosure process;
- AB 2425/SB 1471, imposing a $10,000 fine for robo-signed documents;
- AB 2314/SB 1472, allowing a buyer of blighted, foreclosed property up to 60 days to begin repairs; and
- AB 2610/SB 1473, extending the requirement until 2019 for buyers of foreclosed homes to honor existing lease terms, giving tenants at least 90 days notice before beginning the eviction process.
Of these pending bills, the bills focusing on the rights of buyers of foreclosed, blighted property (AB 2314), and the rights of tenants at foreclosure (AB 2610) are furthest along in the legislative process.
Related articles:
How do you see the Homeowner Bill of Rights affecting the real estate industry? Share your opinions with other readers below.
Re: California foreclosure overhaul signed into law from the Los Angeles Times
My siter was under doctors care and medication. Younger siter and realtor brother n law. Took advantage of sister under medications. By using her funds to buy a house. This had been a $140,000. Transaction. Now sister under doctors care has no money nore a roof over her head.
How do i find help?
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.
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.
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..
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.
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.
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.
“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.
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****