It is called the California Foreclosure Reduction Act that is part of the Homeowners Bill of Rights. There are 4 main points.
- No more dual tracking – lenders can’t be considering a loan modification and continue with a Foreclosure.
- Borrower must be given a single point of contact – no being shuffled around hither and yon.
- No robo-signing – lender’s staff must ensure that reliable evidence has been verified before they can proceed on “foreclosure procedures.”
- Private right of action for “material violations.” This means that a homeowner can take a lender to court for disregarding the new law. A borrower can seek $50,000 or triple actual damages and reasonable attorney fees for a violation. This makes it easier on an individual homeowner since they won’t have to deal with class action cases.
By the way, latest statistics show that Short Sales are increasing and Foreclosure Sales are down. This to me is a good fact for homeowners, lenders and neighborhoods. Not as many deserted houses and normally this means higher comp prices.
courtesy of: www.DuaneGomer.info
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