California’s Homeowner Bill of Rights Summary What Borrowers Need to Know In a nutshell: The Homeowner Bill of Rights (HBOR) was passed by the California Legislature in 2012 and becomes effective January 1, 2013. It adds new protections to existing laws to help prevent avoidable foreclosures. It requires enhanced notifications so that borrowers will know their rights and how to contact their loan servicer to pursue a loan modification or other relief. It curbs “Dual Tracking” where loan servicers put homeowners on the foreclosure track, even when loan modification applications are under consideration. It facilitates better communication between borrower and loan servicer by requiring loan servicers to provide an accountable, consistent point of contact to help the homeowner through the loan modification and or foreclosure process. HBOR requires lenders to provide proper documentation before they can foreclose, and it gives borrowers tools to enforce their rights. The following is a summary of the major consumer protection provisions of HBOR. The most comprehensive details are contained in the actual law itself which can be accessed here. http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0851-0900/sb_900_bill_20120711_chaptered.pdf 1. For Borrowers—HBOR provides a fighting chance to avoid a foreclosure through more notification, an opportunity to apply for a loan modification or other relief for eligible borrowers, and restrictions on dual tracking. Here’s how: A. HBOR requires servicers to send more notifications regarding foreclosure to all borrowers to notify them of their rights:
B. HBOR requires servicers to inform borrowers about the opportunity to apply for a loan modification or other relief, when available.
C. HBOR requires servicers to acknowledge receipt and to not proceed with the foreclosure process while evaluating your eligibility or while you are complying with the terms of an offered loan modification or other relief. Deadlines for submitting a loan modification application may vary by loan servicer. If you submit a loan modification application, the servicer must provide written acknowledgement of receipt of any borrower documentation within 5 business days of receipt that provides information about the application process, advises you of any missing documentation needed to make the application complete and gives you a deadline for submitting that documentation, and:
Who can enforce their rights under these provisions? Eligible Borrower: A borrower may be eligible to enforce their rights if he or she is potentially eligible for any federal, state or lender foreclosure prevention alternative program offered by, or through his or her mortgage servicer. Not Eligible Borrower: A borrower who has surrendered the property as evidenced by either a letter or delivery of the keys to the lender or the authorized agent; a borrower who has decided to leave the home and has contracted with someone to advise on how to stay in the home and avoid the contractual obligations under the loan; a borrower who has filed Chapter 7, 11, 12, 13 bankruptcy and the bankruptcy court has not entered an order closing or dismissing the bankruptcy case. Other Important Limitations:
What lenders and servicers must offer assistance? Any entity servicing a loan on a property located in California is required to offer eligible borrowers an opportunity to apply for loss mitigation alternatives, where available, except entities that have foreclosed on 175 or fewer residential properties located in California in the previous year. Such entities are subject to lesser obligations under HBOR. Also, signatories to the National Mortgage Settlement who are in compliance with the relevant terms of that settlement while it is in effect are considered to be in compliance with these provisions of HBOR. (For more information on the National Mortgage Settlement, see http://nationalmortgagesettlement.com/). What to do if you suspect or know of a violation:
2. HBOR requires the servicer to assign borrowers an accountable “single point of contact” (SPOC) to help navigate the loan modification/foreclosure process, upon request from a borrower who requests a foreclosure prevention alternative.
What to do if you suspect or know of a violation:
3. HBOR requires all borrowers to be protected against foreclosures with inaccurate or unverified information, also known as “robo-signing.”
What to do if you suspect or know of a violation?
4. ENFORCING YOUR RIGHTS: HBOR puts borrowers in the drivers’ seat when there is a violation of certain provisions. As noted above, borrowers should notify the Attorney General and the Department of Corporations when they suspect or know of a HBOR violation. Additionally, borrowers may sue violators in a court of law for material violations of HBOR provisions. Contact an attorney to discuss your rights. The relief the borrower may obtain depends on when the lawsuit is filed.
Finally, beware of scams, especially phone and mail solicitations from scam artists claiming to provide assistance related to HBOR. Check with the state agencies listed above, your housing counselor if you have one and/or a trusted attorney, and do not entrust your money or personal information to anyone who solicits you. Report solicitations to the California Department of Justice at http://oag.ca.gov/contact/consumer-complaint-against-business-or-company Last updated December 18, 2012 What is the penalty for forgery in California?Those charged with forgery as a felony could face up to three years in county jail, fines up to $10,000, and felony probation, which is much more strict than misdemeanor probation.
What is pc115?Penal Code 115 is considered a white collar fraud crime that often involves the act of filing a false or forged real estate deed – making it a common charge for mortgage fraud cases – but it also includes many other types of legal documents.
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