How Lenders Are Not Following The Requirements Of The Homeowner Bill Of Rights

Between 2008 and 2011, more than one million homes in California were foreclosed. In many of these cases, lenders did not provide homeowners with a significant opportunity to obtain loss mitigation options to avoid foreclosure and also engaged in extensive mortgage servicing misconduct. To address this issue, Governor Jerry Brown signed the California Homeowner Bill of Rights into law on July 11, 2012.

The Homeowner Bill of Rights makes the non-judicial foreclosure process in California more fair and transparent. However, Romel Ambarchyan, an attorney at the firm of RA & Associates, APC believes that lenders are still not following the requirements of the Homeowner Bill of Rights (which has since been codified into the California Civil Code). Speaking on the record, Mr. Ambarchyan went on to state that, “lenders and banks have to follow strict procedure and protocol in reviewing clients for loan modifications. Unfortunately, not all lenders are following these protocols.” Mr. Ambarchyan went on to say, “they (lenders) are not providing certain required notices to borrowers both before and after the issuance of a Notice of Default, are not providing a single point of contact, and at times are even refusing to review borrowers outright for a loan modification.” Mr. Ambarchyan stressed however that not all banks or lenders are in violation of the Homeowner Bill of Rights, and that in fact some banks are working with borrowers to assist them in their time of need.

According to Romel Ambarchyan, if a bank has breached a provision of the Homeowner Bill of Rights, a borrower may be entitled to relief in the form of either an injunction or monetary damages. If the property has not been foreclosed on, the sole remedy available to a homeowner under the Homeowner Bill of Rights would be an injunction, which would in essence require the lender to correct the harm, and would result in “attorney’s fees” being awarded to the homeowner. If the property has already been foreclosed on, the homeowner may be also entitled to monetary damages. As such, Mr. Ambarchyan advises clients to dig a little deeper into potential violations in the event they are denied for a loan modification.

For more information on the Homeowner Bill of Rights and whether a homeowner has a potential claim against their lender, call Romel Ambarchyan at RA & Associates, APC at (818)230-3220.
About Romel Ambarchyan

Romel Ambarchyan is a California attorney who specializes in real estate litigation. You can learn more about him by visiting

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