California Homeowners Bill of Rights Prevent Foreclosure

New reports are showing that California Foreclosures have slowed drastically in the first quarter of 2013. Real estate firm, DataQuick has released numbers stating that there has been a 67% decrease in foreclosures over the first quarter of 2012, and a 51.4% drop from Q4 of last year as well. These numbers are encouraging for homeowners who have fallen behind on their monthly mortgage payments who may have been facing foreclosure otherwise.

Lenders filed just 18,567 Notices of Default in the first quarter, which is the first step in the foreclosure process for those behind on payments. The drop in default notices is accredited to the Homeowners Bill of Rights, a new set of laws meant to protect homeowners that went into effect on January 1st, 2013. The new laws prevent the lenders from moving forward with foreclosures in the same manner that they did prior to this year, as many of those practices were deemed as being “predatory.”

The Homeowners Bill of Rights, also known as Senate Bill 900, has decreased the number of foreclosures in California significantly as the real estate market has started to recover. Unfortunately, there are still thousands of homeowners who are in the foreclosure process that may lose their home if they don’t take action quickly.

Predatory Lending Is Not Gone Yet

The California Homeowners Bill of Rights has gotten the attention of most big banks and mortgage lenders who were previously foreclosing on homeowners, but there are still some out there that continue to participate in “predatory lending.” Institutions such as Ocwen are notorious for “Dual Tracking,” which is defined as proceeding with the foreclosure process despite the homeowner being in review for a loan modification.

This is just one of many examples of predatory lending that is now outlawed in the state of California. While many new foreclosures are following protocol, our foreclosure attorneys have seen several court cases since the new laws were passed that are no longer legal.

Facing Foreclosure in California?

If you are among the thousands who are facing foreclosure in California, you should speak with a foreclosure lawyer immediately. Consumer Action Law Group offers free legal consultation and advice for homeowners in California who have received a notice of default or have a trustee sale date. Call us today to speak with someone who can help save your home.

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