Governor Brown signs CA Homeowner Bill of Rights into Law

Governor Jerry Brown has just signed the CA Homeowner Bill of Rights. This group of laws will go into effect on January 1, 2013. These laws will reguire all lenders and servicers to adhere to new laws when working with homeowners who are struggling with their payment. One of the main parts of this legislation will prohibit the practice of "dual tracking". This new law will prohibit lenders from misleading borrowers who are trying to obtain a loan modification or short sale approval and the lender still proceeds with the foreclosure process. In many instances homeowners believe they are days away from receiving a loan modification - allowing them to keep their homes - only to find out the home was sold at public auction. Many time the lenders told the homeowners that the sale date had been postponed only to find out otherwise. For more information refer to the CA Attorney General's website http://oag.ca.gov