If you have ever been the recipient of a foreclosure notice you know that how frustrating it can be to try and get a loan modification. It’s likely that the banks have given you the run-around and you never get to speak to the same person, exasperating your quest to save your home.
Now, California residents will have legal protections since state lawmakers passed a historic bill that gives troubled homeowners added protections.
California will now become the first state to ban “dual-tracking,” a process where a bank initiates the foreclosure process while the homeowner is also attempting to obtain a loan modification. The new law also requires that a mortgage company assign the homeowner a single contact while they go through the foreclosure process. Banks would also have to detail the reasons for denying a modification petition. Borrowers will also have the right to sue a lender of they fail to comply with the regulations.
Too often lawmakers and foreclosure attorneys and housing counselors have encountered homeowners who have been subjected to the unscrupulous practices of banks. The new protections assure that banks do the right thing.
The Mortgage Bankers Association objected to the new law, stating that the costs of compliance would be passed onto future lenders, and hinders the recovery of the real-estate market by slowing down foreclosures.
But a large number of foreclosures also affect the housing market by driving down home prices in adjacent areas. Preventing a foreclosure with the assistance of a foreclosure lawyer helps the homeowner as well as other members of their community.
Anyone who is in danger of losing their homes has options which your foreclosure attorney can outline. Short sales, loan modifications and personal bankruptcies are effective ways to stop foreclosure.