Saving the California Dream with the Homeowners Bill of Rights
Just signed on Wednesday July 11th 2012, this bill should slow down the number of foreclosures per month by one major way called “dual-tracking”. This would prohibit the banks from being able to simultaneously work with the homeowners on a possible loan modification or short sale and at the same time still proceed with the foreclosure process. Bank have continually done this in an effort to keep these transactions handled in a timely manner as loan modification and short sales takes months to complete and require much paperwork to complete including past 2 years complete tax returns, w2′s, paystubs, bank statements , etc.
While this could be great for homeowners, this bill will not take effect until January 1st, 2013. Also, this bill would require the homeowners to become much more proactive about their situation. Currently, we see homeowners who are 90-120 days behind on payments and are not willing to take direction or advice and for the majority; only willing to work with anyone once their home is scheduled for auction in the next few weeks.
If this is the case, I believe the bank will work much more diligently on the foreclosure process on their end as to avoid any possible loss mitigation services. Also, as stated in the video below this will completely bog down our court systems and take even longer to close and short sale transactions taking our economy even longer to recover.
This bill in theory will be great for homeowners, but just as stated in the video below will only delay the inevitable of the property going to foreclosure or becoming a short sale.
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Also, check out the full detail of this bill at http://www.oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-passage-additional-components