Last week California Governor, Jerry Brown, signed legislation to increase protections for California homeowners facing the possibility of foreclosure. Making the state the first to put into law major provisions of the national mortgage settlement (see my previous story here) reached with all but one US state and the nation’s major mortgage lenders.
The new law’s goal is to curb “dual tracking”, no longer allowing lenders to begin foreclosure proceedings while a loan modification is being negotiated, and expands foreclosure notice requirements. It also will require large institutions to give homeowners a single point of contact for dealing with their mortgage and allows more opportunities for homeowners to sue their lender for improper foreclosure processes if the bank does not fix their mistake first.
“Californians should not have to suffer the abusive tactics of those who would push foreclosure behind the back of an unsuspecting homeowner,” Brown said in a statement. “These new rules make the foreclosure process more transparent so that loan servicers cannot promise one thing while doing the exact opposite.”
All provisions of the law will be enacted January 1st, 2013.