New Bill Act Letter




California Homeowners Bill of Rights

The California legislature passed a law on January 2013 to protect homeowners faced with foreclosure. The law calls for no dual tracking, no robo signing, and a single contact for big lenders. Learn about tools and methods to avoid foreclosure, including loan modification and short sale.

 
Protecting California Homeowners Avoid Foreclosure

The numbers don’t lie. California has been hard hit by the housing crisis that started in 2007. From 2007-2011, there were more than 900,000 foreclosure sales. California has 38 of the 100 hardest hit Zip Codes.

However, beyond those numbers there are the personal stories of homeowners struggling to maintain their mortgage payments and save their homes and equity that they have paid into their homes.

The California legislature became the first state legislature that passed a bill, SB 900 and AB 278, to deal with the unfair practices relating to foreclosures. The bill applies to first mortgages for property used as a primary residency. The law was passed in early July 2012 and will soon come before Gov. Brown, who is expected to approve the law.

The California foreclosure protection law comes in the wake of the national mortgage settlement. On February 9 2012 by the Attorney General, Sec of HUD and others announced a nationalmortgage settlement with the five biggest lenders. In order to help you understand the new law and ways to deal with foreclosure learn about:

  • The main points of the California Foreclosure Protection Law
  • Ways to deal with Foreclosure


Main Points of the California Foreclosure Protection Law

The California Legislature passed a law to protect homeowners from being unfairly treated by mortgage servicers. This includes creating an easier and more transparent process for homeowners to communicate with their mortgage servicers and a way for individuals to receive compensation when their mortgage servicer doesn’t follow the new law. The law paves the way for compensation for those who were unfairly treated in the foreclosure process. It also creates stricter requirements and controls over the banks. The major issues raised are:

“Dual-tracking":

Lenders commonly pursue loan modifications and foreclosures at the same time. Often, the loan modification department will give one set of information, at the same time that the foreclosure department proceeds, disregarding a borrower’s earnest attempt to catch up with their mortgage and create a workable loan. The law will not make a modification mandatory, however lenders will be prohibited from negotiating modifications with the borrower and at the same time proceed with foreclosures.

Single point of contact:

The law stipulates that large lenders must set up a contact person for a borrower seeking a loan modification or “foreclosure alternative.” According to the Legislative Digest: “The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes.”

"Robo-signing":

In an attempt to speed up the mortgage foreclosure process, many lenders used improper procedures to process the foreclosure documents. The law allows for civil suits against lenders who do not fix their documentation and/or procedures and violate the law in an intentional manner.

All mortgage servicers:

Whereas the national mortgage settlement dealt with the top five banks, the California law applies to all mortgage servicers.

California Foreclosure: Avoiding Foreclosure

If you are facing problems making your mortgage payments, then the best thing you can do is to stay on top of the problem. Avoiding the lender will not make your problem go away. The best solution depends on your financial situation (do you have a hardship or not?), the amount of equity in your property (are you underwater or not?), and the type of deficiency balance laws in your state (is your loan non-recourse or not?).

California, for example, has non-recourse laws for mortgages used to purchase your primary residency. Whether your loan is a recourse or non-recourse loan has major implications for how you choose to resolve your situation. Make sure that you know if your loan is a recourse or non-recourse loan, even if it means checking with an experienced real estate lawyer in your state.

There are basically two tracks to avoid foreclosure:

Negotiate new terms:

  1. Speak to your lender about a loan modification. There are government programs, including the HAMP loan modification program. A modification is an agreement between you and your current lender, which adjusts your current loan, usually decreasing your monthly payment. The loan modification can include lengthening your payback period, lowering your interest rate and/or a principal reduction. Even if you are not eligible for a government modification program, you should see if your lender offers its own modification program.

  2. Seek a refinance: Even if your house is underwater, there are government programs to help you refinance your home. You must be current on your mortgage payments to qualify, including no late payments in the last 6 months. The major programs are the HARP refinance mortgage and the FHA streamline refinance. Although these programs have less strict credit requirements than those for a standard refinance, many lenders apply stricter requirements than the government programs mandate. •

Sell your property:

  1. Attempt to sell the property, if you have sufficient equity Gustavo Banuelos will help you get up to 18% more money than the average Real-Estate Company call us first for a free market analysis of you properties present market value.
  2. If you are underwater then consider a short sale. You will need the permission of the lender to complete these foreclosure alternatives. Many lenders will prefer a short sell. Here with Gustavo Banuelos we will assist you in keeping you in your property for up to 6 months negotiating relocation fees for up to $20,000.00 from the Bank allowing you to walk away with Cash on hand plus Gustavo Bañuelos will pay for your Credit repair cost giving you a fresh start in life and finding the House you really wanted.

Don’t wait any longer call us today and find out what options are best for you! Gus Bañuelos is a Certified Expert Adviser and will help you make the best decision for you and your family. You can reach us at
Gustavo Bañuelos

Gus began his Real-Estate career in 1995, he was ready to make it on his own soon after excelling in three major real-estate companies Century 21, Coldwell Banker and Remax.

He received the HALL OF FAME AWARD ranking him number 37 out of 10,400 agents he was honored with this prestigious award given to only the top 100 individuals in the Remax world Network.

He used the knowledge that he acquired to start his own company in the year 2000

Gus Bañuelos is motivated by the urge to provide value added life experiences and promotes home ownership across the LA county

community. Gus set his goals high from the start and has never let them down.

As a leader in understanding and implementing the proper strategies needed to accomplish any goal set in Real-Estate, Gus has been able to help others succeed and achieve the real estate dreams they never thought possible by having the experience and knowledge to overcome any obstacle or hurdle put in his path.

Gus has the ability to inspire and encourage anyone that wants more out of life, he is truly a friend.