Helping Homeowners Avoid Foreclosure in Roseville and Sacramento

Have You Heard about the New Law in Effect Known As the California Homeowner Bill of Rights?

Posted on Jul 27, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone, this is Mark Peek at Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. I wanted to give you an update on some new legislation that was passed into law and signed by Governor Brown last week and it’s July 2012. There are some benefits for homeowners so there is some good news from it. The law I’m referring to is the California Homeowner Bill of Rights. You may be wondering how this impacts you as a borrower. If you are currently upside down on a mortgage and you owe more than your home is worth, here’s how it will affect you. If you are applying for a loan modification, one of the dirty things the banks used to do is sign you up for a trial loan modification while advancing you down the foreclosure path because you weren’t paying a full payment. At the end, they could simply deny your loan modification and then put you up for a foreclosure sale.

This new law will prohibit this exact thing which is called dual tracking. There are certain notifications and stipulations in there that are required of a servicer to make sure they are communicating properly with the borrower. This also applies to short sales as well. So if you have an approval for a short sale, that would qualify as an agreement between the bank and the borrower. So if you have an approval letter, they can’t advance your foreclosure sale from wherever it is at that point.

This new law doesn’t take effect until January 2013 so they are giving the banks some time to go back and get prepared for implementing this new law. You are probably going to see responses to loan modification requests much sooner in California. If they can’t take you down the foreclosure process then they are going to have to respond to your loan modification that much quicker.

If you have any questions about this new law or if you are considering a short sale and wondering if taking a loan modification or pursuing a short sale is the best thing for you, give us a call. I would suggest starting off with our short sale calculator on our website. You can enter your property information and it will help you determine how long it’s going to take for you to break even on your current residence. It will give you an idea if it’s worth it to wait or is it worth it to stay put? Then you can give me a call and I can schedule a time to discuss your situation and see if a short sale is right for you or maybe you should stay put and try for a loan modification. Thanks again and I’m Mark Peek with Keller Williams, your Roseville and Sacramento short sale specialist and I’m here to help.

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