Foreclosures and the California Homeowner Bill of Rights

On January 1, 2013 the California Homeowner Bill of Rights became law which helps homeowners who are facing foreclosure.  This is a combination of laws that are designed to provide fairness and transparency to homeowners that are trying to save their homes and prevent foreclosure.  There are two important sections for homeowners:  1. The law prohibits “dual tracking” i.e. lenders are prohibited from advancing the foreclosure process and cannot go to foreclosure sale if you as the borrower have submitted a completed application for a loan modification and until the completed application has been fully reviewed by the lender.  That means that the lender cannot go to foreclosure sale if you are in the middle of a loan modification.  2. Homeowners are now guaranteed a single point of contact while working through the process and are trying to keep their homes.  The person or team with the lender must be familiar with the facts of your case, must have your paperwork and can get you a decision on your modification application.  In addition to the above, the Bill of Rights also includes requirements that all lenders verify all documents recorded in California and if not verified the lender could be subject to fines and borrowers will have authority to seek compensation for material violations of the new laws.  For more information visit the Office of the Attorney General at oag.ca.gov/hbor.

Do You Have Bank of America?

Are you receiving letters about your second mortgage? Is it scaring you? Don't be afraid! Open those letters. Many people who are currently upside down in their first mortgage, and who also have a second, have been getting a very cool letter. They have gotten notified that their second mortgage is being forgiven! Wow! Yep, that means Bank of America doesn't want to be paid back.

And, for the rest 2012, forgiveness of debt income does not require you to pay taxes on it under certain circumstances. Do you have questions about receiving a letter like this? Or do you have questions about short sales, bankruptcies, or foreclosures? Feel free to give me a call and schedule your free consultation.

From Martha Law Offices of Martha Passalqua