California Homeowner Bill of Rights Reenacted

The California Homeowner Bill of Rights of 2012 expired at the beginning of 2018. With 2019, though, comes a new beginning. Effective January 1, 2019 — the date of this blog post’s publication — many of the protections granted by the 2012 law will be reinstated.

A notice of default (NOD) may not be recorded unless at least 30 days have passed since the homeowner was contacted. Attempts to contact must include mailing a notice and calling at multiple times of the day, unless the homeowner requests no telephone contact in writing. Once an NOD is recorded, lenders have five days to notify the homeowner, in writing, of any foreclosure prevention alternatives that may be available.

Foreclosure prevention alternatives cannot have a fee associated with them. One option includes submitting a complete application for a first lien mortgage modification, which has specific timeline requirements, and must have a single point of contact. Approved mortgage modification applications retain their terms even if transferred to another mortgage servicer. Homeowners must be notified of why an application is denied, and they have 30 days to submit an appeal. Lenders who do not comply with these laws may be subject to a lawsuit of up to $50,000.

More: http://journal.firsttuesday.us/california-homeowner-bill-of-rights-is-reenacted/65932/

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