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7 key provisions of The California Homeowner Bill of Rights

Tuesday, January 29, 2013   /   by Dan Keller

7 key provisions of The California Homeowner Bill of Rights

7 key provisions of The California Homeowner Bill of Rights to ensure fair lending and

borrowing practices for California homeowners.

For More Information about this Bill & Foreclosure listings call Dan Keller: 949.244.0320

California Homeowner Bill of Rights

The California Homeowner Bill of Rights became law on January 1, 2013 to ensure fair lending and borrowing practices for California homeowners. 

The laws are designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. Key provisions include: Office of the Attorney General

  • Restriction on dual track foreclosure: Mortgage servicers are restricted from advancing the foreclosure process if the homeowner is working on securing a loan modification. When a homeowner completes an application for a loan modification, the foreclosure process is essentially paused until the complete application has been fully reviewed.
  • Guaranteed single point of contact: Homeowners are guaranteed a single point of contact as they navigate the system and try to keep their homes – a person or team at the bank who knows the facts of their case, has their paperwork and can get them a decision about their application for a loan modification.
  • Verification of documents: Lenders that record and file multiple unverified documents will be subject to a civil penalty of up to $7,500 per loan in an action brought by a civil prosecutor. Lenders who are in violation are also subject to enforcement by licensing agencies, including the Department of Corporations, the Department of Real Estate and the Department of Financial Institutions.
  • Enforceability: Borrowers will have authority to seek redress of “material” violations of the new foreclosure process protections. Injunctive relief will be available prior to a foreclosure sale and recovery of damages will be available following a sale. (AB 278, SB 900)
  • Tenant rights: Purchasers of foreclosed homes are required to give tenants at least 90 days before starting eviction proceedings. If the tenant has a fixed-term lease entered into before transfer of title at the foreclosure sale, the owner must honor the lease unless the owner can prove that exceptions intended to prevent fraudulent leases apply. (AB 2610)
  • Tools to prosecute mortgage fraud: The statute of limitations to prosecute mortgage-related crimes is extended from one to three years, allowing the Attorney General’s office to investigate and prosecute complex mortgage fraud crimes. In addition, the Attorney General’s office can use a statewide grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple counties.
    (AB 1950, SB 1474)
  • Tools to curb blight: Local governments and receivers have additional tools to fight blight caused by multiple vacant homes in their neighborhoods, from more time to allow homeowners to remedy code violations to a means to compel the owners of foreclosed property to pay for upkeep.
    (AB 2314)

The California Homeowner Bill of Rights marked the third step in Attorney General Harris’ response to the state’s foreclosure and mortgage crisis. The Mortgage Fraud Strike Force was created in May 2011 to investigate and prosecute misconduct at all stages of the mortgage process. In February 2012, Attorney General Harris secured a commitment from the nation’s five largest banks for up to $18 billion for California borrowers.

    Article brought to you by Dan Keller of The Keller Home Selling Team, National Association of Expert Advisors in Orange County, Ca Real Estate. 

San Clemente Real Estate, Dana Point Real Estate, Orange County Real Estate, San Clemente Realtor, Realtor, Orange County, The Keller Home Selling  Team, OCKellerTeam, Dan Keller, Kris Forsyth, Ruth Taylor, Kevin Comisky, Short Sale Specialist, Google, Real Estate, Orange County, SearchOCHomesforsale.com, OCHomeBUyerNetwork.com, Orange County Real Estate Team of Experts

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San Clemente, CA 92673
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Based on information from California Regional Multiple Listing Service, Inc. as of November 24, 2020. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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