On January 1, 2013, the state of California enacted the California Homeowner Bill of Rights to guarantee basic fairness and transparency for California homeowners in the foreclosure process. Lenders are now required to comply with all provisions of this law in the foreclosure process.
If you believe your lender is either in violation of the law or has committed a procedural error, you may be entitled to file a lawsuit to stop foreclosure proceedings and force the process to start over.
Do you have a lawsuit against your lender?
Under the provisions of the California Homeowner Bill of Rights, lenders are required to comply with several requirements to ensure fairness and transparency.
Provisions of the Bill of Rights include:
Engaging in dual-tracking
In the past, lenders engaged in the practice of “dual-tracking,” which allowed them to foreclose on your home while a loan modification application was still pending. Under the California Homeowner Bill of Rights, dual-tracking is prohibited and the foreclosure process must cease temporarily while the application is being reviewed. If the application is denied, the lender must wait an additional period of time until the appeals period has expired.
Failing to provide you with a single point of contact
Under the provisions of the California Homeowner Bill of Rights, homeowners are guaranteed a single point of contact as the navigate the process of trying to keep their homes. Today your lender is required to provide you with a person or team who knows the facts of your case, has your paperwork and can provide you with a decision about your application for a loan modification.
Failing to Contact Borrower Prior to Recording a Notice of default
Lenders are required to make several attempts at contact, both by mail and/or telephone, for at least 30 days prior to recording a Notice of Default. Homeowners must be given ample opportunity to explore alternatives to foreclosure.
Breach of Contract
Lenders are required to adhere to specific steps throughout the foreclosure process. If your lender fails to adhere to these steps, they may be in breach of contract. Breach of contract can include failing to provide a permanent loan modification after offering a trial modification or failing to honor a previous loan modification approval.
Charging Excessive Fees
Lenders may attempt to charge excessive fees, disguised as “foreclosure fees” or “lender fees,” on top of your mortgage payments. If you believe you have been charged excessive fees, you may be entitled to file suit against your lender for injunctive relief or damages.
Suing your mortgage lender
If you believe your lender has violated the law when handling your foreclosure, it is important to retain an attorney that will review your case to determine if your lender has acted illegally. At RA & Associates, our attorneys are experienced in identifying irregularities involved in the servicing of your loan, your loan history and your payments to determine if your lender has violated any provision of the Homeowner Bill of Rights.
With over a decade of experience in real estate litigation, the attorneys at RA & Associates have successfully resolved countless cases for our clients. For help with your legal issue, contact our Los Angeles office today for a preliminary analysis of your case.