When people hear “Bill of Rights” and “Due Process” they immediately think of the US Constitution. California, behind AG Kamala Harris, released an outline of the California Homeowner Bill of Rights.
The first part of the bill would be known as the Foreclosure Reduction Act of 2012, which address dual tracking issues. Banks often result resort to dual tracking which means the bank pursues the foreclosure process while a homeowner pursues a modification.
One of the many provisions of the act will also forbid servicers from recording a notice of default (NOD) and a notice of sale if a modification application has been filled out or another loss mitigation effort is pending.
The Due Process Reform Legislation requires a single point of contact for homeowners. Among other requirements in the act is a $10,000 civil penalty for “robosigned” documents.
Keep in mind that this bill still needs to be passed. Or course, the banks will lobby hard against the passage.
It will be like getting a loan mod approved. Looks like someone will have “to push, fight, and negotiate” to get this bill passed.