Sonora, CA — Governor Jerry Brown has signed legislation designed to help struggling homeowners renegotiate their mortgages.
Following yesterday’s signing of the Homeowner Bill of Rights, Brown has released a statement reading, “These new rules make the foreclosure process more transparent so that loan servicers cannot promise one thing while doing the exact opposite.”
The Governor’s Office reports that the Home Owner Bill of Rights includes four major components:
• Prohibiting “dual track” foreclosures that occur when a servicer continues foreclosure while also reviewing a homeowner’s application for a loan modification;
• Creating a single point of contact for homeowners who are negotiating a loan modification;
• Expanding notice requirements that must be provided to a borrower before taking action on a loan modification application or pursuing foreclosure; and
• Allowing injunctions against foreclosure until violations are corrected and permitting civil penalties against servicers that file multiple, inaccurate mortgage documents or commit reckless or willful violations of law.
Brown says the legislation provides borrowers with certainty that their loan application will receive a full review and consideration before any foreclosure occurs.